By Given the economic conditions in South Africa with a contracted GDP, it is a welcomed announcement that the fuel prices have been adjusted downward for the month of June.
With favourable global economic conditions and a better performing Rand under the period in review, the Minister for the Department of Mineral Resources and Energy (DMRE) Mr Gwede Mantashe announced on Tuesday, 4 May 2024, a decrease in fuel prices.
He said the Rand appreciated, on average, against the US Dollar (from 18.90 to 18.45 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 about 30.00 cents per litre on all products.
He gave reasons for the downward adjustment; which includes the average Brent Crude oil price decreasing from 88.10 US Dollars (USD) to 82.98 USD per barrel, during the period under review. The main contributing factors are the increased production by the US and other non-OPEC countries on the back of a slow or declining global economy.
Prices have been adjusted as follows:
Both grades of Petrol 93 and 95 (ULP & LRP): One hundred and twenty-four cents per litre (124.00 c/l) decrease.
Diesel (0.05% sulphur): One hundred and eighteen point five four cents per litre (118.54 c/l) decrease.
Diesel (0.005% sulphur): One hundred and eight point five four cents per litre (108.54 c/l) decrease.
Illuminating Paraffin (wholesale): Eighty cents per litre (80.00 c/l) decrease.
SMNRP for IP: One hundred and seven cents per litre (107.00 c/l) decrease.
Maximum LPGas Retail Price: One hundred and thirty-five cents per kilogram (135.00 c/kg) decrease.
