The retail price of petrol will decrease by 71 cents a litre from Wednesday for both the 93 and 95 octane grades, the department of mineral resources and energy said on Monday.
The wholesale price of diesel will be reduced by between 80 and 84 cents a litre, while illuminating paraffin will fall by 43 cents a litre, providing some breathing space for thousands of poor South African households which use the product for cooking and lighting.
The reason for the drop in fuel price, the department said, was the decreasing trend of crude oil prices during the period under review. The average Brent crude oil price eased from $82.20 to $75.90.
The change brings the price of a litre of 95 unleaded petrol in South Africa’s inland areas to R22.63 per litre.
Commenting on the petrol price just before the announcement, the Automobile Association said lower petrol prices would ease pressure on financially strained consumers.
“Increasing interest rates are adding enormous pressure on already embattled consumers in a weak economy. Many people are struggling to make ends meet and any relief, even if it is slight, will assist consumers,” it said.