Lower international fuel prices and a stronger rand against the dollar have helped fuel prices decrease this month. This may bring some relief to farmers in the summer grain areas who are still busy planting.
By Francois Williams, senior journalist at African Farming and Landbouweekblad
Wholesale prices for diesel with a sulphur content of 0.05% will be 50c per litre cheaper tomorrow (Wednesday), and cleaner diesel with a sulphur content of 0.005% will be 57c per litre cheaper. The wholesale price of lighting paraffin will decrease by 53c per litre, and petrol prices will be 65c per litre cheaper.
Due to geopolitical uncertainty surrounding international issues involving Iran, Greenland, Kazakhstan and Venezuela, the average Brent crude oil price has risen from $61 to $64 per barrel in the past month. In addition, extremely cold weather has disrupted oil production in the United States, leading to price pressure. But despite the more expensive oil prices, the average international product prices of diesel and petrol fell because stock levels were mostly sufficient.
The only fuel product that will increase tomorrow is liquefied petroleum gas (LPG), which will increase by 31c per kg, and by 36c per kg in the Western Cape. This is largely because the price of propane and butane has risen on international markets. This is due to the cold weather in the Northern Hemisphere, which has caused demand to rise while international supplies are limited.
On the coast wholesale diesel will cost R17.08 per litre from 4 February and R17.91 per litre in Gauteng. Paraffin’s price will drop to R12.10 per litre in Gauteng and R11.08 per litre on the coast, with LPG prices in Gauteng rising to R34.74 per kg and on the coast to R31.49 per kg, except for the LPG, which is imported to the Western Cape via Saldanha and will cost R33.58 per kg.
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