Photo by: Bloomberg
On Wednesday, the petrol price (both 93 and 95 unleaded) will be cut by 71c a litre, while diesel will be lowered by either 80c or 84c a litre depending on the sulphur content.
Illuminating paraffin will be 43c a litre cheaper.
South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.
The rand took a large hit to a record low following US accusation that Russia received arms from South Africa. But the average Brent crude oil price fell from $82.20 to $75.90 a barrel.
In a statement, the Department of Mineral Resources and Energy said this was due to concerns about lower-than-expected economic growth in China, which will affect fuel demand. In addition, oil inventories grew faster than expected, while concerns about the US debt ceiling – which could have triggered a debt default and market chaos – also weighed on the oil price.
The latest change brings the price of a litre of 95 unleaded petrol to R22.63 in Gauteng, compared to R24.17 a year before – and a record price of R26.74 in July last year.
The wholesale diesel price is now R19.31 a litre in Gauteng. As recently as in November last year, diesel cost close to R25.50. Diesel is back to levels before the invasion of Ukraine caused a big spike in oil prices.