After a late Tuesday evening announcement on the adjusted fuel prices, the awaited decreases will only come into effect on Thursday, 4 July.
The fuel price adjustments are usually effected on the first Wednesday of the month, but due to the delayed confirmation by the Department of Mineral Resources and Energy (DMRE), motorists will have to wait another day.
Furthermore, the DMRE confirmed that both grades of petrol will decrease by R1,05 per litre. Diesel costs are down by 30 cents per litre, with illuminating paraffin 18 cents cheaper per litre.
Why prices dropped
The department says the decreased fuel prices is the result of a stronger Rand and lower Brent Crude Oil prices, among other things.
In its statement, it noted that the price of Brent Crude oil dropped from $82.98 to $82.24 per barrel. Which, it says, is mainly because the US and other countries increasing their oil production.
It says the South African Rand also strengthened slightly against the US Dollar, from 18.46 to 18.44 Rand per USD.
These factors, in turn, led to cheaper international petrol prices, with the Basic Fuel Price for petrol dropping by about by 93.66 – 99.65 cents per litre, diesel by 17.55 – 23.80 cents per litre, and illuminating paraffin by 16.87 cents per litre.
Meanwhile, due to the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of zero cents per litre is applicable in the price structures of petrol and diesel with effect from 4 July, which saves motorists 4.38 cents per litre.
This is the second consecutive drop in fuel prices recorded this year, and welcomed by the Automobile Association (AA). It says this will bring much needed relief for embattled consumers.
“A decrease [in] fuel prices in July will mark the first time this year that prices have fallen in two consecutive months. Fuel pricing will be pushed back in line with pricing last seen in December 2023 when a litre of ULP95, for instance, cost R23.25 inland,” read a statement by the AA on projected fuel price drops.
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The AA’s Eleanor Mavimbela says it does, however, remain concerned about the other price hikes that consumers are dealing with. Mavimbela called on the new Cabinet to address these challenges.
“A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes. We implore the new administration to prioritise finding sustainable solutions to rising fuel costs by conducting a long overdue and transparent review of the fuel pricing structure.”
