The Department of Mineral Resources and Energy has released the official fuel price adjustments, set to take effect from Wednesday, 4 September 2024. After a strong recovery at the start of August, fueled by stable global oil prices and a stronger rand against the dollar, South Africans will see another significant decrease in petrol and diesel prices.
This marks the fourth consecutive price reduction at the pumps, with petrol prices dropping by 92 cents per litre and diesel prices seeing cuts between 79 and 105 cents per litre.
Here’s a breakdown of the changes:
| Fuel | Price Change |
|---|---|
| Petrol 93 | Decrease of 92 cents/litre |
| Petrol 95 | Decrease of 92 cents/litre |
| Diesel 0.05% (wholesale) | Decrease of 79 cents/litre |
| Diesel 0.005% (wholesale) | Decrease of 105 cents/litre |
| Illuminating Paraffin | Decrease of 103 cents/litre |
| LPGAS | Decrease of 10 cents/kg |
The average price of Brent Crude oil dipped from $83.55 to $78.54 per barrel during the review period. This drop is largely due to increased production by major oil-producing nations, despite concerns over lower demand and expectations of interest rate cuts by the US Federal Reserve.
Reflecting the lower crude oil prices, average international petroleum product prices also fell, leading to reductions in the Basic Fuel Prices:
- Petrol: 85.59 c/l and 78.40 c/l
- Diesel: 93.55 c/l and 67.63 c/l
- Illuminating Paraffin: 91.86 c/l
Additionally, the rand appreciated slightly against the US dollar, moving from an average of R18.23 to R18.05 per USD. This stronger rand contributed to further reductions in the Basic Fuel Prices of all products by over 10 cents per litre.
At the end of July 2024, the cumulative slate showed a positive balance of R2.13 billion for petrol and diesel. As per the Self-Adjusting Slate Levy Mechanism, a slate levy of zero cents per litre remains included in the price structures of petrol and diesel from 4 September 2024.
Furthermore, the Minister of Mineral Resources and Energy approved a 5.3 c/l increase in the price structure of petrol to cover wage adjustments for Forecourt employees, aligning with the Motor Industry Bargaining Council (MIBCO) Agreement. This adjustment will also take effect from 4 September 2024.
Here’s how the new prices will appear at the pumps (diesel prices reflect wholesale rates; pump prices may differ):
Inland Prices:
| Fuel Type | August Official | September Official |
|---|---|---|
| 93 Petrol | R22.71 | R21.79 |
| 95 Petrol | R23.11 | R22.19 |
| Diesel 0.05% (wholesale) | R20.38 | R19.59 |
| Diesel 0.005% (wholesale) | R20.74 | R19.69 |
| Illuminating Paraffin | R14.80 | R13.77 |
| LPGAS (per kg) | R35.95 | R35.85 |
Coastal Prices:
| Fuel Type | August Official | September Official |
|---|---|---|
| 93 Petrol | R21.92 | R21.00 |
| 95 Petrol | R22.32 | R21.40 |
| Diesel 0.05% (wholesale) | R19.59 | R18.80 |
| Diesel 0.005% (wholesale) | R19.98 | R18.93 |
| Illuminating Paraffin | R13.80 | R12.77 |
| LPGAS (per kg) | R32.99 | R32.89 |
Motorists can enjoy some relief at the pumps this month, with prices dropping across all categories, providing a welcome break for consumers.