Consumers across South Africa are feeling some financial relief as the Department of Mineral Resources and Energy (DMRE) announces significant decreases in fuel prices for June. The adjustments, which took effect on Wednesday, result in reductions across all grades of fuel.
In a statement issued on Tuesday, the DMRE detailed the following decreases:
- Petrol 93 and 95 (ULP and LRP): R1.24 decrease per litre.
- Diesel (0.05% sulphur): R1.18 decrease per litre.
- Diesel (0.005% sulphur): R1.08 decrease per litre.
- Illuminating Paraffin (wholesale): 80 cents decrease per litre.
- Single Maximum National Retail Price for illuminating paraffin: R1.07 decrease per litre.
- Maximum LP Gas Retail Price: R1.35 decrease per kilogram.
The DMRE explains several factors influencing these price adjustments.
The average Brent Crude oil price decreases from 88.10 US Dollars (USD) to 82.98 USD per barrel during the period under review,” the department notes. “The average international product prices decrease following the lower Brent Crude oil prices during the period under review. Furthermore, petrol prices are also affected by the release of inventories by the US ahead of the Memorial holiday. The movement in product prices leads to a lower contribution to the Basic Fuel Price (BFP) of petrol by 76.16 c/l, diesel by 60.00 – 71.00 c/l, and illuminating paraffin by 50.20 cents per litre.
Additionally, the Rand’s appreciation against the US Dollar, moving from an average of 18.90 to 18.45 Rand per USD during the review period, also contributes to the lower fuel prices. This currency movement leads to a reduction in the Basic Fuel Prices of all products by approximately 30.00 cents per litre.
The price adjustments are welcomed by consumers and businesses alike, providing some economic relief amid fluctuating global fuel markets and local economic pressures. The new prices have been effective since Wednesday, June 5, 2024.
