By The economy of South Africa continues to show some recovery and gaining momentum, this was evidenced in the repo rate cut and inflation lowering beyond target; now massive cuts on fuel prices are on the cards.
The Minister for the Department of Mineral Resources and Energy (DMRE) Mr Gwede Mantashe has announced fuel prices adjustments for the month of October to take effect from the 2nd of October 2024.
The price drop come at the backdrop of oil prices decreasing due to increased production in major oil producing countries. According to the DMRE, the average Brent Crude oil price decreased from 78.54 US Dollars (USD) to 72.82 USD per barrel, during the period under review.
Other international factors include a decrease in petroleum prices. According to the department, the average international petroleum product prices decreased on average, in line with the lower oil prices, during the period under review. This led to lower contributions to the Basic Fuel Prices of petrol by 91.74 c/l and 85.04 c/l, diesel by 91.37 c/l and 88.72 c/l and illuminating paraffin by 87.64 c/l, respectively.
The Rand also performed well against the US Dollar in September. The DMRE says the Rand appreciated on average, against the US Dollar (from 18.05 to 17.68 Rand per USD) during the period under review. This led to lower contributions to the Basic Fuel Prices of all products by over 21.00 cents per litre.
Fuel Prices were adjusted as follows:
Petrol 93 (ULP & LRP): One hundred and six cents per litre (106,00 c/l) decrease.
❖ Petrol 95 (ULP & LRP): One hundred and fourteen cents per litre (114.00 c/l) decrease.
❖ Diesel (0.05% sulphur): One hundred and fourteen cents per litre (114.00 c/l) decrease.
❖ Diesel (0.005% sulphur): One hundred and twelve cents per litre (112.00 c/l) decrease.
❖ Illuminating Paraffin (wholesale): One hundred and eleven cents per litre (111.00 c/l) decrease.
❖ SMNRP for IP: One hundred and forty-eight cents per litre (148.00 c/l) decrease.
❖ Maximum LPGas Retail Price: Twenty-three cents per kilogram (23.00 c/kg) increase.
