Motorists will get significant relief at the pumps from July 1, with petrol, diesel and paraffin prices all dropping following lower global oil prices and a stronger rand.
The lower fuel price will bring much-needed relief to consumers and businesses, especially after the recent high fuel prices caused the cost of goods to soar.
Petrol to drop by more than R1.90 per litre
According to a Central Energy Fund media statement, petrol prices will drop by more than R1.90 per litre, while diesel users will see even bigger reductions.
Petrol 93 octane will decrease by R2.01 per litre, while petrol 95 octane will fall by R1.96 per litre.
Diesel prices will also decline significantly, with a R3.14 per litre drop for 0.05% sulphur diesel and a R3.59 per litre decrease for 0.005% sulphur diesel.
Paraffin users will benefit the most, with wholesale prices falling by R5.23 per litre, while the Single Maximum National Retail Price will drop by R6.97 per litre.
However, LPGas, generally used in homes for heaters and cooking, will buck the trend, with a slight increase of 16 cents per kilogram.
Lower global oil prices
The Department of Mineral and Petroleum Resources, through the Central Energy Fund, attributed the price cuts mainly to declining international product prices and a stronger rand.
During the review period from May 29 to June 25, international prices for petrol, diesel and illuminating paraffin dropped, contributing to lower local fuel costs.
At the same time, the rand strengthened against the US dollar, reducing fuel price pressure further and contributing to lower basic fuel prices across all products.
Fuel levy reinstated
Despite the overall decrease, the full fuel levy has now been reinstated after temporary relief measures were phased out. This means motorists will again pay R4.29 per litre on petrol and R4.16 per litre on diesel in taxes.
A reduction in the slate levy also helped soften prices. The levy decreased by R43.8 per litre, as part of efforts to manage the accumulated under-recovery in the fuel price system.
The latest adjustments mark one of the more substantial fuel price cuts in recent months, offering relief to households and easing transport and logistics costs.
Read More: Fuel prices cause surge in inflation to 4.5%
- From July 1, petrol, diesel, and paraffin prices in South Africa will significantly drop due to lower global oil prices and a stronger rand.
- Petrol prices will fall by about R1.90 per litre, with 93 octane decreasing by R2.01 and 95 octane by R1.96 per litre.
- Diesel prices will see bigger cuts: R3.14 per litre for 0.05% sulphur diesel and R3.59 per litre for 0.005% sulphur diesel.
- Paraffin wholesale prices drop by R5.23 per litre, and the retail price falls nearly R7 per litre; however, LPGas prices rise slightly by 16 cents per kilogram.
- Despite cuts, full fuel levies have been reinstated (R4.29/l petrol and R4.16/l diesel), but a reduced slate levy helped ease overall price pressures.
