Mineral and Petroleum Resources Minister Gwede Mantashe has announced an adjustment of fuel prices based on current local and international factors, with effect from midnight, October 2.
It means the price of fuel will retreat to levels last seen in February 2022 and heralds the fifth decrease in a row.
A departmental statement said international factors that had contributed to the price drop included the fact that South Africa imported both crude oil and finished products at a price set at the international level, including importation costs.
The main reasons for the fuel price adjustments are the decrease in the average Brent Crude Oil price from $78.54 to $72.82 per barrel, during the period under review.
The main contributing factor is the increased production from major oil-producing countries despite lower demand concerns.
In addition, the average international petroleum product prices decreased, on average, in line with the lower oil prices, during the period under review. This led to lower contributions to the basic fuel prices of petrol by 91.74 c/l and 85.04 c/l, diesel by 91.37 c/l and 88.72 c/l and illuminating paraffin by 87.64 c/l, respectively.
Also, the rand appreciated on average against the US dollar (from 18.05 to 17.68 rand per USD) during the period under review.
“This led to lower contributions to the basic fuel prices of all products by over 21.00 cents per litre,” the department said.
It added that “the cumulative slate amounted to a positive balance of R3.84 billion for petrol and diesel at the end of August 2024.
“In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of zero cents per litre remains in the price structures of petrol and diesel with effect from October 2”.
Based on current local and international factors, the fuel prices for October 2024 will be adjusted as follows: Petrol 93 (ULP & LRP), 106 cents per litre; Petrol 95 (ULP & LRP): 114c/l; diesel (0.05% sulphur), 114c/l; diesel (0.005% sulphur), 112.00 c/l); illuminating paraffin (wholesale), 111.00 c/l.
