By Naledi Ngcobo

Unaudited data from the Central Energy Fund (CEF) shows that the price of petrol is set to drop by between 94-cents and 86-cents a litre depending on the grade, while the wholesale price of diesel is expected to decline by around 76-cents a litre.

The price of illuminating paraffin is also expected to drop by R1 ($0.06) a litre.

The Department of Mineral and Petroleum Resources is expected to make the official announcement on fuel prices next week Monday, ahead of the adjustment on Wednesday.

Automobile Association Spokesperson Eleanor Mavimbela explains: “The reason for this welcome news is the perfect combination of a strengthening Rand/US Dollar exchange rate since the middle of August, and significantly lower international oil prices which dipped around mid-August and increased the over-recovery on the fuel prices in the period under review. If the predicted decreases materialise, the cumulative impact of the last four decreases is substantial. Considering, for instance, ULP93 Inland, the decreases amount to around R2.44($0.14) per litre which in total will bring about a saving of around R122 ($6.84 )on a 50 litre petrol tank.”

-SABC--