JOHANNESBURG, June 30 (Xinhua) -- South Africa's Department of Mineral and Petroleum Resources on Tuesday announced the first reduction in petrol and diesel prices in several months.
Minister of Mineral and Petroleum Resources Gwede Mantashe said the latest adjustments were driven mainly by lower international oil prices and a stronger rand against the U.S. dollar.
During the review period ending in June, the average price of Brent Crude decreased from 104.59 U.S. dollars to 86.53 dollars per barrel. Meanwhile, the rand strengthened against the U.S. dollar from 16.52 rand to 16.38 rand per U.S. dollar.
Effective July 1, the retail price of 93 octane petrol will decrease by 2.01 rand per liter while 95 octane petrol will fall by 1.96 rand per liter, with 0.05 percent sulphur diesel dropping by 3.13 rand per liter and 0.005 percent sulphur diesel by 3.58 rand per liter, according to the statement.
Wholesale illuminating paraffin will fall by 5.23 rand per liter. However, the maximum retail price of liquefied petroleum gas will increase by 0.16 rand per kg nationally and by 0.19 rand per kg in the Western Cape.
The department also announced that the government's temporary fuel levy relief has been phased out. "The short-term relief measures have been completely phased out and the full fuel levies of 429 cents per liter on petrol and 416 cents per liter on diesel will be reinstated," it said.
The latest round of price cuts is expected to ease transport costs and provide some relief from inflationary pressures, although the restoration of the full fuel levy is likely to offset part of the benefit for consumers.
Fuel prices in South Africa are adjusted monthly under a regulated pricing mechanism that takes into account international refined fuel prices, the rand-U.S. dollar exchange rate, taxes, levies and distribution costs. ■