Large cut in diesel price confirmed, petrol also cheaper next week

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The petrol price will be cut by 65c on Wednesday, while wholesale diesel prices will be lowered by between R2.35 and R2.41 a litre.

The wholesale price of illuminating paraffin will fall by R1.71 a litre.

The latest changes will bring the Gauteng 95 petrol price down to R23.25 a litre, while the coastal price will be lowered to R22.53 - the lowest prices since August.

Wholesale diesel will cost R21.82 a litre in Gauteng from Wednesday, and R21.09 on the coast, also the cheapest since August. 

South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.

The average price of Brent crude oil over the past month was $82.62 a barrel, from $88.72 the previous month. The oil price has cooled due to increased production and fears over global economic growth.

The average rand/dollar rate over the past month has strengthened to R18.55, from R19.16 in the previous month.

Weaker-than-expected inflation data in the US has fuelled expectations that the Fed won't hike interest rates any further, which will make the dollar less attractive for investors looking for yield.

In November, the price of petrol was lowered by R1.78 a litre, while diesel was cut by more than 80c.