It has been officially confirmed that all grades of fuel are set to decrease this week, offering much-needed relief to financially strained South African consumers. This announcement was made by the Department of Minerals and Petroleum Resources on Monday, 2 September 2024.
According to the Department, the reductions in fuel prices are as follows:
- Petrol 93 (ULP & LRP): 92 cents decrease
- Petrol 95 (ULP & LRP): 92 cents decrease
- Diesel (0.05% sulphur): 79 cents decrease
- Diesel (0.005% sulphur): R1.05 decrease
- Illuminating Paraffin (wholesale): R1,03 decrease
- Single Maximum National Retail Price for illuminating paraffin: R1.38 decrease
- Maximum LPGas Retail Price: 10 cents decrease
In a statement issued on Monday, the Department explained, “The average Brent Crude oil price decreased from 83.55 US Dollars (USD) to 78.54 USD per barrel, during the period under review. The main contributing factors are the increased production from major oil-producing countries despite lower demand concerns, and the anticipated interest rate cuts by the US Federal Reserve.”
Furthermore, the Department also highlighted that the average international petroleum product prices fell during the period under review, in line with the decline in crude oil prices. This resulted in lower contributions to the Basic Fuel Prices by 85.59 cents per litre for petrol, 93.55 cents per litre for diesel, and 91.86 cents per litre for illuminating paraffin.
“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,” the Department added.
With these price adjustments set to take effect from Wednesday, what are your thoughts on the matter? Share your views in the comment section below.
On a related note, be sure to read the following article: AA predicts major fuel price drop in September: What it means for you
