Relief as fuel’s three-month increases abate
RETHABILE MOHONO
MASERU – Lesotho motorists, who have been bearing the burden of steadily increasing petrol prices for the past three months, can now heave a sigh of relief after the Petroleum Fund recently announced reductions in the cost of fuels. September and October saw large hikes in the prices of diesel, petrol, paraffin and liquid petroleum gas, further squeezing already burdened consumers as international crude oil prices increased and the Loti/ Rand weakened against the US Dollar.
From Wednesday this week, the prices of all types of fuels were. The pump prices of both grades of petrol (Petrol93 and 95) decreased by one loti and eighty-five lisente (M1.85) per litre while the pump price of diesel50 decreased by one loti and twenty-five lisente (M1.25) and illuminating Paraffin decreased by ninety lisente (0.90c) per litre.
The new retail prices for all districts in Lesotho is as follows: Petr0193 at M20.65 per litre, Petr0195 at M21.15 per litre, Diese150 at M24.15 per litre, and Illuminating Paraffin (retail) at M18.30 per litre.
The petrol price decrease in South Africa is also attributed to the weakness of the Rand against the Dollar, as stated by the Department of Mineral Resources and the Department of Energy (DMRE). The DMRE also said that international fuel prices and lower shipments of crude oil from Russia’s Urals have contributed to the recent price hikes in petrol, diesel, and illuminating paraffin. Since South Africa heavily relies on fuel imports, these factors have had a direct impact on the country’s fuel prices.
August saw increased demand for crude oil from India and China, and decreased supply from producer Saudi Arabia, which led to price hikes for that month. The last time petrol prices saw a decrease was in July 2023.
On the other hand, the Petroleum Fund in previous months announced that costs are determined by various factors, including transportation, the costs of petroleum products at distribution centres, and associated duty charges.
It further stated that in September fuel price increase was attributed to several factors, including a slight rise in crude oil prices during the review period. The average price for August 2023 was $85.1 per barrel, representing a 6.8% increase from the $79.70 experienced in July 2023. This increase is due to the tightening supply of crude oil resulting from production cuts made by Saudi Arabia.
Furthermore, the fund stated that the current increase in diesel and paraffin prices can be attributed to a decline in the shipment of Russia’s crude oil, specifically the Urals blend, known for its high middle distillate content. Additionally, there has been an upsurge in demand for middle distillates in anticipation of the winter season in the Northern Hemisphere.
The Petroleum Fund, however, advised retailers to conform to the said gazetted prices, as it is illegal to charge prices that are different from those gazetted.
“This appeal comes from past observations that some retailers have continued to charge prices that are above those published. Any retailer who will be found to be charging prices in contravention of these newly set prices shall be prosecuted accordingly,” the Fund said in a statement.
