By Nozipho Sibiya | 2018-03-09
Motorists will heave a sigh of relief as fuel prices were reduced by E0.40 per litre at midnight.
Principal Secretary in the Ministry of Natural Resources and Energy, Winnie Stewart confirmed the good news to motorist through a press statement.
“The ministry of natural resources and Energy cordially informs the public that petrol and diesel prices will decrease by 40 cents/per litre, respectively and illuminating paraffin price will decrease by 20 cents/litre. The new fuel prices came into effect by midnight and effective today, March 9, 2018,” reads the statement. The PS said the fuel decrease is a benefit emanating from the strong and stable Lilangeni.
“The average Brent crude oil price averaged US$65 in the month of February, 2018 compared to an average of US$68 realised in the month of January, 2018, whilst the Lilangeni/ US Dollar Exchange rate strengthened to an average of E11.86 in February, 2018 from an average of E12.33 realised in January,” reads the statement.
Last December, the ministry of natural resources increased the price of all fuel products by 70 cents per litre.
The increase in the fuel prices were as a result of higher crude oil prices which increased in November.
This was caused by that the Lilangeni to the US Dollar exchange rate being weakened, trading at E14.13 in November 2017 compared to E13.61 in October 2017.
The combined effect of the higher crude oil prices and the weaker lilangeni or dollar exchange rate led to under-recoveries (deficit) in the fuel prices, necessitating a fuel price increase.
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