Confirmed: Petrol, diesel prices to be lowered on Wednesday

Coffeekai/ Getty Images

Marelise Van Der Merwe

For more financial news,go to the News24 Business front page.Diesel and petrol prices will be lowered on Wednesday thanksto oil price weakness.

Petrol (93 and 95 unleaded) will be cut by 22c a litre,while diesel wholesale prices will be lowered by 41c to 42c a litre,dependingon the sulphur content.

The wholesale prices of illuminating paraffin will fall by31c,while the maximum LPGas retail price will increase by 46c/kg.

The average Brent crude oil price declined from $71.04 to $66.40over the month.

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"(This was due to) the tariff and trade war initiated by theUS which has raised global economic recession concerns and a possible lowerdemand for crude oil," the DMRE said in a statement.

Oil prices are under pressure as the risk of globalrecessions will weigh on fuel demand,while a shock OPEC+ decision to raiseproduction has triggered sharp falls.

READ | In a stunning move,Saudi Arabia and Russia are now pushingoil prices lower

The oil price weakness helped to neutralise an initial blowoutin the rand-dollar rate,which almost reached R19.90 earlier this month amidshock over new US tariffs and fears that the DA will leave thebusiness-friendly government of national unity.

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But the rand has since recouped its losses,and is currentlytrading at R18.41/$,from R18.87 a month ago.

From Wednesday,the price of 95 unleaded petrol will be R21.40a litre in Gauteng - compared to R25.49 a year before.

The Gauteng wholesale price will be lowered to R18.90 alitre,from R20.96 a year ago.

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