The Department of Mineral Resources and Energy (DMRE) has praised the decline in the price of crude oil and other petroleum products on the global market.
At Monday’s end of business, the price of Brent Crude oil was roughly 105 US dollars per barrel, down roughly 10% on average from the average price for June 2022.
South Africans have been protected by the government for the past four months from the whims of the oil market and the full effects of the high international oil prices.
From 6 April 2022 to 5 July 2022, there was an R1.50 per litre temporary reduction in the general fuel duty.
From July 6 through August 2, 2022, this was lowered to 75 cents per litre.
The government said that South Africans will still see a large reduction in fuel prices, including paraffin, in a statement that said: “Despite this reprieve coming to an end on 2 August 2022.
By the end of the week, an official announcement in this regard will be made.
Consultation on the implementation of the 93 octane fuel price cap has officially begun, as it was in April 2022.
The fuel providers who can pass the benefit on to the consumer can do so thanks to this price cap.
No market problems, according to the department, are anticipated because 93 octane only makes up a small portion of the market; nonetheless, this will allow the agency to watch how the market responds to the price cap.