Picture: ISTOCK
Picture: ISTOCK

The retail price of 93 octane petrol in Gauteng will drop by R1.22 a litre on Wednesday, taking the price to R13.79 a litre, energy minister Jeff Radebe said in a media release on Friday.

The retail price of 95 octane petrol in Gauteng is dropping by R1.23 a litre, taking it to R14.01 a litre.

January’s petrol-price drop follows December’s R1.84-a-litre cut, which took the price down from a peak R16.85 a litre in October and November.

The SA retail price of petrol is set once a month by the Central Energy Fund, a division of the department of energy. All service stations are required to charge the same price, with different prices inland and at the coast.

The price is usually announced on the last Friday of each month, and takes effect on the first Wednesday of each month.

The government sets the wholesale price of diesel, but permits the service stations to compete on the profit margin they add.

The wholesale price of standard diesel will fall by 155.92c a litre on Wednesday, taking it to R13.13 a litre.

“The rand depreciated on average from R14.09 to the dollar to R14.18 to the dollar during the period under review when compared to the previous one. This led to a slightly higher contribution to the basic fuel prices of petrol, diesel and illuminating paraffin by 3.42c a litre, 3.98c a litre and 4.06c a litre respectively,” Radebe said.

“The average Brent crude oil price decreased from $65.09 a barrel to $58.28 a barrel during the period under review. This was due mainly to concerns about the growth in demand as stock markets weakened because of the confusion stemming from the postponement of a parliamentary vote on the Brexit deal,” he said.

laingr@businesslive.co.za