South African transporters are set to benefit from a substantial cut in fuel prices from 2 April.
The Department of Mineral Resources and Energy has announced significant cuts in fuel prices, with diesel seeing the most notable decline.
Diesel with 0.05% sulphur will decrease by 83.80 cents per litre (c/l), while diesel with 0.005% sulphur will drop by 85.80 c/l. These reductions will provide much-needed relief to logistics companies managing high fuel expenses.
Additionally, the price of petrol 93 (ULP & LRP) will decrease by 58 c/l, and petrol 95 (ULP & LRP) will drop by 72 c/l. The wholesale price of illuminating paraffin will decline by 81.70 c/l, and the Single Maximum National Retail Price will decrease by R1.14 per litre. The retail price of LP Gas is set to decline by 79c/kg.
The department said the primary reasons for the downward adjustment were a decrease in international crude oil and petroleum product prices and the recent appreciation of the rand.
The average price of Brent Crude declined from $74.89 per barrel to $71.04 during the review period. This was largely influenced by stable supply from non-OPEC countries and a moderate increase in output expected from OPEC+ producers in April.
International petroleum product prices followed the downward trend, contributing to lower basic fuel prices. Diesel prices specifically saw a reduction of 80.10 c/l in this regard.
The South African rand appreciated against the US dollar, strengthening from R18.50 to R18.30 per USD, leading to a further reduction in fuel prices. Diesel prices benefited with an additional 12.42 c/l decrease due to the stronger currency.
The department said the cumulative slate levy balance for petrol and diesel amounted to R2.435 billion as of February 2025. As a result, the slate levy remains unchanged at zero cents per litre, ensuring stability in pricing structures.
