By Price cuts on fuel are an ever welcomed gesture given the high cost of life. The economy of South Africa is not at its best performance yet, however, the Rand performed well against the US Dollar during the period under review which influenced the price cuts on fuel.
The Department of Mineral Resources and Energy (DMRE) announced on Monday, 5 August 2024, that fuel prices have been adjusted downward; this is despite international factors including price increase on Brent Crude oil and the on-going geo-political tensions.
According to the department; the average Brent Crude oil price increased from 82.24 US Dollars (USD) to 83.55 USD per barrel, during the period under review. The main contributing factors are the decline in US inventories, reduced production from Canada due to the wildfires, tensions in the Middle East as well as continued production cuts by OPEC.
The Rand also performed well against the US Dollar strengthening from 18.44 to 18.23 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 14.00 per litre.
Fuel prices were adjusted as follows for the month of August:
Petrol 93 (ULP & LRP): Fifteen cents per litre (15.00 c/l) decrease.
Petrol 95 (ULP & LRP): Fifteen cents per litre (15.00 c/l) decrease.
Diesel (0.05% sulphur): Twenty eight cents per litre (28.00 c/l) decrease.
Diesel (0.005% sulphur): Seventeen cents per litre (17.00 c/l) decrease.
Illuminating Paraffin (wholesale): Twenty-two cents per litre (22.00 c/l) decrease.
SMNRP for IP: Twenty-nine cents per litre (29.00 c/l) decrease.
Maximum LPGas Retail Price: Fourteen cents per kilogram (14.00 c/kg) decrease.
