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By Palesa Matlala
- Paraffin, burned by millions of poor households for cooking and light, dropped by R6.97 a litre from Wednesday, 1 July.
- Petrol fell by up to R2.01 a litre and diesel by up to R3.59, both effective from Wednesday, 1 July.
Paraffin just got the biggest price cut of any fuel this month. The maximum retail price fell by R6.97 a litre from Wednesday, bigger than the drop for petrol or diesel.
The wholesale price of paraffin also fell, by R5.23 a litre. Paraffin is used by many South African households without electricity to cook and for light.
Petrol 93 fell by R2.01 a litre. Petrol 95 dropped by R1.96. Diesel fell by up to R3.59 a litre.
The cuts still leave motorists paying more than they were earlier this year. Petrol remains about R5.76 a litre higher than it was in March. Diesel is still about R6.21 more expensive.
A driver filling a 50 litre petrol tank will pay about R100 less than before the cut. A 70 litre diesel tank now costs more than R200 less.
The general fuel levy returned to its full rate this month, after government’s temporary relief ended. Motorists now pay R4.29 a litre in fuel levy on petrol and R4.16 a litre on diesel.
Transport Minister Barbara Creecy said her department and the Road Accident Fund have started reviewing how the fund is paid for. The Road Accident Fund is mainly funded through a levy charged on every litre of fuel sold in the country.
The DA said the Road Accident Fund’s problems come from poor management, corruption and waste, not from motorists paying too little.
If oil prices stay low and the rand holds steady, another fuel price cut could follow next month. A new conflict in the Middle East or a weaker rand could reverse it.
Pictured above:People queing up to buy paraffin.
Image source: Supplied
