Latest Fuel Price Adjustments in South Africa: A Relief for Motorists
The Department of Mineral Resources and Energy has announced the latest fuel price adjustments, which will take effect from Wednesday, 5 June 2024. This development brings much-needed relief to motorists, as fuel prices have been decreasing for the month of May. The adjustments are based on current local and international factors that influence fuel prices.
Key Factors Influencing Fuel Prices
- Crude Oil Prices: The average Brent Crude oil price increased from $84.22 to $88.10 per barrel during the period under review. This increase is attributed to growing geopolitical tensions in the Middle East and sustained production cuts by OPEC+ countries.
- International Petroleum Product Prices: The average international product prices of petrol, diesel, and illuminating paraffin decreased during the period under review. This decrease in prices has led to lower contributions to the Basic Fuel Prices of these products.
- Rand/US Dollar Exchange Rate: The Rand appreciated against the US Dollar during the period under review, on average, when compared to the previous period. This appreciation led to a lower contribution to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 30.91 c/l, 29.90 c/l, and 30.03 c/l, respectively.
- Slate Levy: The combined cumulative petrol and diesel Slate balances at the end of April 2024 amounted to a negative balance of R696.3 million. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 4.38 c/l (decrease of 17.54 c/l) has been implemented into the price structures of petrol and diesel with effect from 05 June 2024.
Price Changes
The following price changes will reflect at the pumps:
- Petrol 93: Decrease of 124 cents per litre
- Petrol 95: Decrease of 124 cents per litre
- Diesel 0.05% (wholesale): Decrease of 119 cents per litre
- Diesel 0.005% (wholesale): Decrease of 109 cents per litre
- Illuminating Paraffin: Decrease of 80 cents per litre
- LPGAS: Decrease of 135 cents per kg
Regional Price Differences
The price changes will vary across different regions. For example, in the inland areas, the prices for petrol 93 and 95 will decrease by R1.84 and R1.24, respectively, while diesel prices will decrease by R1.19. In the coastal areas, the prices for petrol 93 and 95 will decrease by R1.24 and R1.36, respectively, while diesel prices will decrease by R1.19.
The latest fuel price adjustments in South Africa bring relief to motorists, with prices decreasing across various fuel types. These adjustments are based on current local and international factors that influence fuel prices. The Slate Levy decrease and the appreciation of the Rand against the US Dollar have also contributed to the lower fuel prices. It is essential for people to stay informed about these changes to make informed decisions about their fuel consumption and budgeting.
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