ANOTHER PETROL CUT EXPECTED

MBABANE – As oil prices have plunged to a 21-year low, companies and individuals might celebrate another petrol price cut.

Minister of Natural Resources Peter Bhembe had announced that petrol and paraffin prices would decrease by E1 per litre early this month. Diesel prices decreased by 80 cents per litre with effect from Thursday Midnight, April 2, 2020 (effective Friday, April 3, 2020)

The pressure on government will mount following the recent oil plunge. The commodity’s latest round of sharp selling comes as uncertainty mounts around storage for excess oil.

“Brent crude losses were muted by comparison, with the commodity sliding by 3 per cent  to $27.81 per barrel.
“The price of oil has continued to slide even after OPEC and its allies agreed to the biggest-ever production cut - one intended to backstop prices. Investors remain unconvinced the cuts can offset cratering demand for the commodity as the coronavirus keeps society from operating normally.

Concerns

Concerns around storage come as near-term WTI crude prices trade at large discounts to longer-dated contracts. That dynamic is playing out amid worry that a key storage hub in the US is nearing capacity,” reported various online sites that included Business Day.
In reaction to the  developments, according to the latest estimates from  South Africa’s Central Energy Fund, the price of 95 petrol could be lowered by more than R1.80 a litre in that country in the first week of May, while 93 petrol will go down R1.73.

This will bring the price of 95 petrol in Gauteng to around R12.16 a litre and 93 to R12.03.
In April, 93 unleaded petrol was cut by R1.76 while 95 unleaded petrol fell by R1.88.

prices

Diesel prices of South Africa, according to the reports, look set for a cut of R1.15 to R1.20 a litre in the first week of May.
Sikelela Khoza, who is Communications Officer in the Ministry of Natural Resources, said the department was currently finalising assessments for this month and the nation would be informed if there was a likelihood of an adjustment (up/down) in a way of a press release.
“The Ministry conducts monthly fuel price reviews which give direction on whether a price adjustment is necessary or not,” he said.

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