The retail price of petrol will decrease on average by 27 cents a litre next Wednesday, the department of Minerals and Energy announced on Friday.

It said the actual decreases in the pump prices of all grades of petrol would differ due to the rounding off of pump prices to accommodate the dispensers that could not display 4-digit numbers.

So in Gauteng, for instance, the pump prices would decrease by 30 c/l, it said.

The decrease follows an increase last month of between 69 to 75 cents a litre to record levels of between 10.40 rand and 10.70 rand. The price of petrol now drops to 10.40 rand a litre in Gauteng and to 10.10 in coastal areas.

Diesel prices will also decrease next week but paraffin prices will increase.

Diesel 0.05 percent sulphur decreases by 16 cents and 0.005 percent by 17 cents.

Wholesale paraffin increases by 3.4 cents and illuminating paraffin by four cents.

Diesel in Gauteng now costs 11.27 rand a litre and 11.13 at the coast.

During the period under review, the average international product prices of petrol decreased, whilst diesel and illuminating Paraffin increased, the department said.

The average rand/dollar exchange rate strengthened when compared to the previous period. The average rand/dollar exchange rate for the period 27 June 2008 to 31 July 2008 was 7.6814 compared to 7.9352 during the previous period.

The department also announced that the Minister of Minerals and Energy had approved an increase of 5.4 c/l in the wholesale margin applicable in the price structures of all grades of petrol, all grades of diesel and illuminating paraffin with effect from Wednesday 6 August.

The National Energy Regulator of South Africa (Nersa) has, in terms of the provisions of the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003), also set revised petroleum pipeline transport tariffs with effect from Wednesday, 6 August. These revised petroleum pipeline transport tariffs will be implemented into the price structure of petrol and diesel.

I-Net Bridge