The Department of Mineral Resources and Energy (DMRE) confirmed that fuel prices, including paraffin, will still be reduced significantly for South Africans, despite a reduction in international petroleum product prices, including crude oil prices.
DMR said a formal announcement is expected by the end of the week.
According to the department, because 93 Octane holds such a small share of the market, the price cap will not affect fuel prices, thus allowing the market to monitor its effects.
“The price of Brent Crude oil—one of the world’s most traded commodities—was floating around $105 per barrel on the market at the end of business on Monday, down on average by about $10 USD compared to the average price in June 2022.”
Despite the reprieve ending August 2, 2022, the department confirms that South Africans will still enjoy significantly reduced fuel prices, including paraffin.
“The government imposed a temporary cut in the fuel levy of R1.50 per litre from April 6, 2022 to July 6, 2022. This was reduced to 75 cents per litre from July 6, 2022 to August 2, 2022,” said DMR.