MZANSI motorists can breathe a sigh of relief as petrol prices are expected to drop slightly on Wednesday, 5 July.
The price of petrol 95 ULP and LRP will fall by 17 cents per litre.
This was confirmed by Mineral Resources and Energy Minister Gwede Mantashe in a statement on Monday, 3 July.
According to Mantashe, the decrease in petrol prices comes from recession fears and anticipated global economic slowdown.
“The US Federal Reserve left interest rates unchanged earlier this month. However, warned of future increases.
“On the other hand, the European Central Bank and The Bank of England have increased interest rates due to these continued recession fears.
“This slower economic growth outlook has contributed to lower crude oil prices,” he said.
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According to Mantashe, fuel price adjustments are based on current local and international factors.
He said South Africa’s fuel prices are adjusted monthly, informed by international and local factors.
“International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs,” Mantashe said.
Despite a decrease in petrol prices, Mantahse said the price of diesel 0.005% sulphur would increase by 18 cents per litre.
“The increase is due to the continuing driving season in the Northern Hemisphere. Middle distillate prices increased at a higher rate than petrol due to tighter supplies,” he said.
