Relief as petrol and diesel prices drop from Wednesday

South African motorists can breathe a sigh of relief with a drop in petrol and diesel prices from Wednesday.

The price reduction will be welcomed by South Africans as they navigate a hostile economic climate.

The Department of Mineral Resources and Energy (DMRE) has announced the price of both 93 and 95 octane petrol will decrease from Wednesday, 5 June 2024.

Prices

Both 93 and 95 octane petrol will decrease by R1.24 per litre.

The price of diesel (0.05% sulphur) will be cut by R1.19 per litre, while diesel with 0.005% sulphur will drop by R1.09 per litre.

Meanwhile, illuminating paraffin will cost 80 cents less per litre, while the price of LP Gas decreases by R1.35 per kilogramme.

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Reason for petrol decrease

DMRE spokesperson Robert Maake said there were several factors that contributed to the decreases in petrol and diesel prices.

Brent Crude oil prices

The department said the average Brent Crude oil price decreased from 88.10 US dollars (USD) to 82.98 USD per barrel, during the period under review.

“The main contributing factors are the increased production by the US and other non-OPEC countries on the back of a slow or declining global economy.”

Rand/US dollar exchange rate

The rand appreciated, on average, against the US dollar (from 18.90 to 18.45 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 all products by about 30.00 cents per litre on all products,” the department said.

Slate levy

The department said the cumulative slate amounted to a negative balance for petrol and diesel of R696.3 million at the end of April 2024.

“In line with the provisions of the self-adjusting slate levy mechanism, a slate levy of 4.38 c/l will be applicable in the price structures of petrol and diesel with effect from the 5th of June 2024, which is a decrease of 17.54 cents per litre on the prices of both diesel and petrol.

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