The Department of Mineral Resources and Energy has announced that all grades of fuel are expected to decrease this week, bringing much-needed relief to South African consumers.
The price of a litre of petrol will decrease by around 90c while the price of a litre of diesel will decrease between 79c and R1 depending on the grade.
Fuel Price Adjustments for This Week
- Petrol 93 (ULP & LRP): 92 cents decrease per litre
- Petrol 95 (ULP & LRP): 92 cents decrease per litre
- Diesel 0.05% Sulphur: 79 cents decrease per litre
- Diesel 0.005% Sulphur: R1.05 decrease per litre
- Illuminating Paraffin (wholesale): R1.03 decrease per litre
- Single Maximum National Retail Price for Illuminating Paraffin: R1.38 decrease per litre
- Maximum LPGas Retail Price: 10 cents decrease per kilogram
This means that as of Wednesday, a litre of 95 petrol, which currently costs R23.11 in Gauteng, will drop to R22.19 per litre.
In a statement released on Monday, the department detailed how international and local factors that led to this month’s fuel price adjustments.
Reasons for the Fuel Price Decrease
The average Brent Crude oil prices decreased from 83.55 US Dollars (USD) to 78.54 USD per barrel during the review period.
Reasons for this include an increase in the production of fuel by major oil-producing careers and anticipated interest rate cuts by the US Federal Reserve.
The average international petroleum product prices also decreased in line with lower crude oil prices. This reduction led to a decrease in the Basic Fuel Prices, with contributions of 85.59 cents per litre for petrol, 78.40 cents per litre for diesel, and 91.86 cents per litre for illuminating paraffin.
Additionally, the Rand appreciated slightly against the US Dollar, from an average of 18.23 to 18.05 Rand per USD during the review period. This resulted in a further decrease of over 10 cents per litre for all fuel products.
The Rand appreciated on average, against the US Dollar (from 18.23 to 18.05 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 over 10.00 cents per litre
These price adjustments will take effect from Wednesday, offering some financial relief to South Africans at the pump.
