How much money will the petrol price decrease save you?

On Monday, the Minister of Mineral Resources and Energy, Gwede Mantashe announced the adjustment of the petrol price based on current local and international factors.

Based on current local and international factors, the fuel prices for June 2021 have been adjusted as follows:

• Petrol price (both 93 and 95 ULP and LRP) will decrease by 10 cents per litre
• Diesel will increase by 20 cents per litre (0.05% sulphur) and 21 cents per litre (0.005% sulphur)
• Illuminating paraffin (wholesale) will increase by 20 cents per litre
• IP (SMNRP) will increase by 26 cents per litre
• Maximum LPGas Retail Price will decrease by 143 cents per kilogram

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors, said Mantashe.

How much less will you pay for petrol in June?

While you won’t be saving hundreds of rands at the pumps from tomorrow, you’ll be saving around R7, depending on the size of your petrol tank. If you’re filling up with diesel, you’ll have to fork out a little more.

Factors that influence the petrol price

International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs.

The main reasons for the fuel price adjustments are due to the contribution of international petroleum product prices and the rand/US dollar exchange rate.

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“The movement in international refined petroleum product prices of diesel and illuminating paraffin followed the increasing trend in crude oil prices. This led to higher contributions to the Basic Fuel Price of petrol, diesel and illuminating paraffin by 6.28 c/l, 35.52 c/l and 36.67 c/l respectively.

“The Rand appreciated, on average, against the US Dollar (from 14.48 to 14.11 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 17.14 c/l, 16.32 c/l and 15.96 respectively.”

Meanwhile, crude oil prices increased from $64.16 to $66.00 per barrel during the period under review.

“The oil prices remain at high levels as the season for oil demand is approaching, and the lockdown restrictions are lifted in most European countries and the United States of America (USA).”