Relief at the Pumps: Petrol and Diesel Prices is set to DROP

Consumers in South Africa can expect some financial relief as fuel prices are set to decrease across all grades this month. This announcement comes from the Department of Mineral Resources and Energy (DMRE) in a statement released on Tuesday.

Starting from Wednesday, June 5, 2024, the price changes are as follows:

Petrol 93 and 95 (ULP and LRP): Decrease by R1.24 per litre.
Diesel (0.05% sulphur): Decrease by R1.18 per litre.
Diesel (0.005% sulphur): Decrease by R1.08 per litre.
Illuminating Paraffin (wholesale): Decrease by 80 cents per litre.
Single Maximum National Retail Price for Illuminating Paraffin: Decrease by R1.07 per litre.
Maximum LP Gas Retail Price: Decrease by R1.35 per litre.

Several factors have contributed to these adjustments. The average Brent Crude oil price fell from $88.10 to $82.98 per barrel during the review period. This reduction in international product prices was further influenced by the release of US inventories ahead of the Memorial holiday, leading to a lower Basic Fuel Price (BFP) for petrol, diesel, and illuminating paraffin.

Additionally, the South African Rand appreciated against the US Dollar, moving from an average of 18.90 to 18.45 Rand per USD, resulting in lower contributions to the BFP of all products by approximately 30 cents per litre.

The CEF data indicated over-recoveries in fuel prices, predicting a decrease of 78 to 80 cents per litre for petrol and about 85 cents per litre for diesel

Motorists can look forward to these reductions as they provide some respite from the financial pressures of rising living costs. The adjustments reflect the combined effects of favorable exchange rates and stable international oil prices, despite recent increases in global oil prices

More sources: (The South African) ( (ShowMe South Africa).