FOLLOWING numerous instances of petrol price increases in South Africa, petrol and diesel prices are anticipated to decrease this month.
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The Department of Mineral Resources and Energy has announced the adjustment of fuel prices, effective from midnight on July 4, based on current local and international factors.
Fuel prices in South Africa are subject to monthly revisions intricately linked to the global market, where both crude oil and refined products are sourced.
The department said these imports incur expenses that affect pump prices, including logistics such as shipping.
The price of 93 Unleaded petrol is set to decrease by R1.05 per litre and 95 Unleaded by 99 cents per litre. Diesel prices will also decrease, with 500ppm diesel dropping by 30 cents and 50ppm diesel by 24 cents per litre. Illuminating paraffin will see a decrease of 18 cents per litre.
According to a statement from the department, during the review period, the average Brent Crude oil price marginally declined from 82.98 US Dollars (USD) to 82.24 USD per barrel. This decrease was driven by increased production from the US and other non-OPEC nations amid a subdued global economic climate.
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Simultaneously, the international petrol product costs mirrored the decline in Brent Crude oil prices. As a result, this downward trend lessened their impact on the Basic Fuel Price (BFP) calculation, resulting in reductions of 93.66 – 99.65 c/l for petrol, 17.55 – 23.80 c/l for diesel, and 16.87 c/l for illuminating paraffin.
The department also noted that the South African Rand experienced a slight appreciation against the US Dollar during the review period, moving from an average of 18.46 to 18.44 Rand per USD. This slight strengthening contributed to a marginal decrease of approximately 1.50 cents per litre across all fuel products.
In accordance with regulatory procedures, the difference in octane ratings between 95 and 93 petrol grades was reviewed based on established guidelines. This adjustment, effective from the same date, ensured varied retail prices for 95 and 93 petrol grades across different fuel-pricing zones.
In light of these comprehensive analyses and regulatory adjustments, the expected fuel price revisions for July 2024 were formally disclosed as follows:
- Petrol 93 (ULP & LRP): decrease of 105.00 c/l.
- Petrol 95 (ULP & LRP): decrease of 99.00 c/l.
- Diesel (0.05% sulphur): decrease of 30.38 c/l.
- Diesel (0.005% sulphur): decrease of 24.38 c/l.
- Illuminating paraffin (wholesale): decrease of 18.00 c/l.
- Single maximum national retail price for illuminating paraffin: decrease of 24.00 c/l.
- Maximum LPGas Retail Price: decrease of 22.00 c/kg.
These adjustments reflect the current economic and market conditions influencing fuel prices in South Africa.
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