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Price Drop Coming

South African motorists can look forward to some relief at the pumps from Wednesday, 7 May.

Petrol prices are set to drop by 22 cents a litre (both 93 and 95 unleaded), diesel will go down by 41 cents, and illuminating paraffin drops by 31 cents.  While not a massive drop, it still keeps petrol prices cheaper than they were last year.

However, not all fuels are going down unfortunately, just as winter starts to set in LPG will increase by 46 cents per Kg.

Why the Drop?

Global oil prices have taken a dip.

Brent Crude fell from $71.04 to $66.40 per barrel (that’s a drop of around 6.5%). Now, we wont see the same percentage drop due to all the extra fees and expenses built into our fuel costs but it has an impact.

The per barrel price dropped partly because OPEC+ surprised the market by increasing oil production instead of cutting it, and of course, because fears of a global recession (due to ongoing trade tariff confusion and chaos) have already led to lower demand.

Also, the rand has performed a tiny bit better against the US Dollar in the past few days, helping bring local fuel prices down, since we do our oil shopping in Dollars.