(Ecofin Agency) - South African Energy department on Friday, announced that the retail price of petrol will reduce by 1.5% while the price of wholesale diesel will go down by 4.4% from September 7.

According to the department, the price of petrol will drop by 18 cents to 12.17 rand per litre, while diesel will reduce by 49 cents to 10.49 rand per litre, Reuters reports.

July’s pump price for a litre of petrol reduces to 99 cents for all grades, while the price of diesel 0.05% sulphur and diesel 0.005% sulphur was reduced by 74 cents and 73 cents a litre respectively. Meanwhile in August, petrol price remained unchanged at 99 cents a litre, with diesel dropping by 73-74 cents a litre and the price of illuminating paraffin reducing by 88 cents a litre.

This decrease, according to the department, is as a result of the strengthening of the rand and the weaker oil price.“The Rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains. The local currency was pegged at R15.70 to the dollar at the end of May, but is now sitting around the R14.20 mark,” the South African Automobile Association said in August.

Anita Fatunji