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The retail price of fuel will be adjusted at midnight on Tuesday, 30 April, the Department of Energy has announced.
According to the Department, the average Brent crude oil price has decreased by approximately 5.48 per cent, as supply outstripped demand during the period 27 March to 25 April 2013.
Slower than expected economic growth in China and the US, continued economic weaknesses in the Eurozone, and the slowdown in consumption in Japan, were cited as contributing factors.
The International Monetary Fund (IMF) also played a role in the decrease as it lowered its outlook for world economic growth to 3.3 per cent from its January forecast of 3.5 per cent. In addition, the resumption of crude oil flows, which had been shut for most of 2012 by non-OPEC members, increased the supply of crude oil.
Crude oil prices are, however, expected to recover as refineries, particularly in the US, come back into production ahead of the driving season. Geopolitical events in North Africa are also expected to make a contribution to the upward movement of the crude oil price.
The Rand benefited from capital flows to emerging market economies as a result of the Bank of Japan’s plans to embark on a monetary stimulus over the next two years, and the US Federal Reserve being unlikely to end its quantitative easing programme soon because of sluggish growth in the world’s biggest economy. These monetary stances contributed to capital inflows to South Africa through investments in bonds.
In line with the provisions of the Self-Adjusting Slate Levy Mechanism, the Slate Levy will decrease by 6.56 cents a litre from 21.92 c/l to 15.36 c/l and will be incorporated into the price structures of petrol and diesel with effect from 01 May 2013.
More information can be read in this detailed breakdown.