On Wednesday, July 3rd, 2024, South African motorists received welcomed news as fuel prices across the country marked a decline for the second consecutive month. Calculations from the Central Energy Fund (CEF) highlighted a notable decrease, attributing it to favorable shifts in both international and local markets.
According to the Department of Mineral Resources and Energy (DMRE), which is soon to be known as the Department of Mineral Resources following a separation from the Department of Energy and Electricity, several positive factors influenced the July 2024 petrol price adjustment.
Here are the revised fuel prices effective today:
Petrol 93: Decreased by R1.05 per litre
Petrol 95: Decreased by 99 cents per litre
Diesel 0.05%: Decreased by 30.4 cents per litre
Diesel 0.005%: Decreased by 24.4 cents per litre
Illuminating Paraffin (wholesale): Decreased by 18 cents per litre
Maximum liquid petroleum gas retail price: Decreased by 22 cents per kg
The DMRE attributed these reductions to a decline in the average price of Brent Crude Oil, which dropped from $82.98 to $72.24 per barrel. As the primary determinant of fuel prices internationally, Brent Crude Oil’s decrease positively impacted final fuel product costs.
Additionally, the exchange rate between the US Dollar and the Rand played a crucial role. With the Rand strengthening slightly by two cents against the Dollar between June and July, South Africans benefited from lower fuel costs at the pumps. This adjustment resulted in a reduction of approximately 1.50 cents per litre across all fuel products, reflecting the decreased Basic Fuel Prices.
Furthermore, the Slate Levy for July 2024, typically applied to compensate oil companies for pricing adjustments delays, remained at zero per litre. This decision further contributed to the overall decrease in fuel prices by 4.38 cents per litre.
Looking ahead, if the Rand continues its stability against the Dollar and Brent Crude Oil prices remain favorable, motorists in South Africa could potentially experience another decrease in petrol prices come August.
This latest adjustment underscores the intricate interplay between global oil markets, currency fluctuations, and local policy decisions impacting fuel prices for consumers across South Africa.
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