MASERU — Motorists are smiling all the way to garages after the Petroleum Fund slashed the price of petrol by a massive 30 lisente per litre on Friday.
A litre of diesel now costs 15 lisente cheaper while illuminating paraffin has also been reduced by 15 lisente per litre.
The new prices are likely to be welcomed by motorists who had endured gradual increases in the price of fuel over the past few months.
For instance, the price of diesel shot by a massive 25 lisente a litre at the beginning of May while the price for petrol was hiked by 10 lisente during the same month.
In a statement, the Petroleum Fund said the decrease in prices was due to a softening of crude oil prices on the international market.
For Zone One, which covers the lowlands including Quthing up to Mount Moorosi and Qacha’s Nek, the retail price for a litre of petrol is now M7.20 per litre, down from M7.50.
Diesel will retail at M7.60 per litre, down from M7.75 per litre, while the wholesale price for a litre of paraffin has been set at M5.20, down from M5.35.
In Zone Two, which includes Mphaki, a litre of petrol will retail at M7.26, down from M7.56 last month.
A litre of diesel will cost M7.66 while a litre of paraffin will retail at M5.25.
The pump price for a litre of petrol will retail at M7.29 in Zone Three which includes Thaba-Tseka and surrounding areas.
Diesel will retail at M7.29 per litre, down from M7.81.
A litre of paraffin will retail at M5.28 per litre down from M5.40.
For Zone 4, which covers the whole of Mokhotlong district, a litre of petrol will retail at M7.38, down from M7.59.
A litre of diesel will cost M7.78, down from M7.84, and the pump price for a litre of paraffin will cost M5.36, down from M5.43.
The decrease in the price of fuel should result in an increase in consumer spending as consumers will have more disposable income.
It could also result in a slight decrease in the prices of consumer goods.
The lower fuel bill could filter through to general prices in supermarkets ensuring a respite for consumers.