Fuel Prices Set to Drop in South Africa from October 2

All grades of petrol and diesel will see significant reductions, while LP gas prices will increase.

Starting Wednesday, October 2, South African motorists can expect relief at the pumps, as the prices for all grades of petrol and diesel are set to decrease. The Department of Mineral and Petroleum Resources announced the adjustments on Monday, which will also include a reduction in the price of illuminating paraffin. However, LP gas prices will see a slight increase.

Price Adjustments

The following changes to fuel prices will take effect:

Petrol 93 (ULP & LRP): Decrease of R1.06

Petrol 95 (ULP & LRP): Decrease of R1.14

Diesel (0.05% sulphur): Decrease of R1.14

Diesel (0.005% sulphur): Decrease of R1.12

Illuminating Paraffin (wholesale): Decrease of R1.11

Single Maximum National Retail Price for Illuminating Paraffin: Decrease of R1.48

Maximum LPGas Retail Price: Increase of 23 cents

With these adjustments, a litre of 95 petrol in Gauteng, which currently costs R22.19, will drop to R21.05. Coastal areas will also benefit, with the price of a litre of 95 petrol falling from R21.40 to R20.26.

Factors Influencing Price Changes

The department attributed the adjustments to various international and local factors. The average Brent Crude oil price has decreased from $78.54 to $72.82 per barrel during the review period. This decline is primarily due to increased production from major oil-producing nations, despite concerns over lower demand.

Additionally, average international petroleum product prices have also dropped in line with the decrease in oil prices, resulting in lower contributions to the Basic Fuel Prices of petrol (by 91.74 cents per litre for petrol and 85.04 cents for diesel) and illuminating paraffin (by 87.64 cents).

Furthermore, the South African Rand appreciated against the US Dollar, strengthening from 18.05 to 17.68 Rand per USD. This led to a decrease in contributions to the Basic Fuel Prices across all products by over 21 cents per litre.

These adjustments reflect a positive trend for consumers, providing some financial relief amidst rising living costs.