South Africa Announces Second Consecutive Fuel Price Decrease for July

"The average Brent Crude oil price decreased from 82.98 US Dollars (USD) to 82.24 USD per barrel during the period under review," stated the department.

The Department of Mineral and Petroleum Resources has announced a significant decrease in fuel prices across all grades for the month of July, providing much-needed relief to consumers in South Africa.

This marks the second consecutive month of fuel price reductions. The adjusted prices effective from Wednesday, July 3, 2024, are as follows:

Petrol 93 (ULP and LRP): Decrease of R1.05 per litre.

Petrol 95 (ULP and LRP): Decrease of 99 cents per litre.

Diesel (0.05% sulphur): Decrease of 30 cents per litre.

Diesel (0.005% sulphur): Decrease of 24 cents per litre.

Illuminating Paraffin (wholesale): Decrease of 18 cents per litre.

Single Maximum National Retail Price for illuminating Paraffin: Decrease of 24 cents per litre.

Maximum LP Gas Retail Price: Decrease of 22 cents per litre.

The department attributed the price adjustments to several factors in the international market. "The average Brent Crude oil price decreased from 82.98 US Dollars (USD) to 82.24 USD per barrel during the period under review," stated the department. Increased production by the US and other non-OPEC countries amidst sluggish global economic growth contributed to this decrease.

Additionally, the department noted that the average international product prices of petrol decreased in line with lower Brent Crude oil prices. This movement resulted in a reduced contribution to the Basic Fuel Price (BFP) of petrol by 93.66 to 99.65 cents per litre, diesel by 17.55 to 23.80 cents per litre, and illuminating paraffin by 16.87 cents per litre.

The strength of the Rand against the US Dollar also played a role in the price reduction. "The Rand appreciated slightly, on average, against the US Dollar (from 18.46 to 18.44 Rand per USD) during the period under review," the department explained. This led to lower contributions to the Basic Fuel Prices across all products by approximately 1.50 cents per litre.

This reduction in fuel prices comes as welcome news for consumers and businesses alike, providing some relief amidst economic pressures.