Consumers to Benefit as Fuel Prices Drop Across South Africa

Consumers are set to experience some financial relief as the Department of Mineral Resources and Energy (DMRE) has announced a reduction in fuel prices effective tomorrow. The adjustments are detailed as follows:

Petrol 93 and 95 (ULP and LRP): Decrease by R1.24 per litre

Diesel (0.05% sulphur): Decrease by R1.18 per litre

Diesel (0.005% sulphur): Decrease by R1.08 per litre

Illuminating Paraffin (wholesale): Decrease by 80 cents per litre

Single Maximum National Retail Price for illuminating paraffin: Decrease by R1.07 per litre

Maximum LP Gas Retail Price: Decrease by R1.35 per kilogram

Factors Influencing the Price Decrease

1. Decrease in Brent Crude Oil Prices: The average price of Brent Crude oil fell from 88.10 USD to 82.98 USD per barrel during the review period. This decline in crude oil prices significantly influenced the reduction in fuel prices.

2. International Product Prices: The drop in Brent Crude oil prices led to a corresponding decrease in international product prices. Additionally, petrol prices were affected by the release of inventories by the US ahead of the Memorial holiday. These changes resulted in a lower contribution to the Basic Fuel Price (BFP) of petrol by 76.16 cents per litre, diesel by 60.00 – 71.00 cents per litre, and illuminating paraffin by 50.20 cents per litre.

3. Appreciation of the Rand: The Rand appreciated against the US Dollar, moving from an average of 18.90 to 18.45 Rand per USD during the review period. This appreciation contributed to a decrease in the Basic Fuel Prices of all products by about 30.00 cents per litre.

These adjustments aim to ease the financial burden on consumers, providing some relief amid fluctuating global oil prices and currency exchange rates.