Minister of Mineral Resources and Energy Gwede Mantashe has announced fuel price decreases that will take effect on the back of lower international oil prices this week.
According to the announcement, inland petrol prices will drop by as much as R1.32 per litre, diesel prices will decrease by up to 99 cents per litre, and the cost of Illuminating Paraffin will drop by R1.44 per litre.
This is after taking into account the return of the full general fuel levy which will increase by 75 cents per litre from August 2. As a result, the fuel levy will amount to R3.94 for petrol and R3.80 for diesel.
According to the Department of Minerals and Energy (DME), the following price decreases will take effect from August 3:
- Petrol 93 – R1.32 per litre
- Petrol 95 – R1.32 per litre
- Diesel 0.05% – 88 cents per litre
- Diesel 0.005% – 91 cents per litre
- Illuminating Paraffin – R1.44 per litre
The department said in a statement that the latest fuel price adjustment was based on current local and international factors, including the drop in crude oil prices from $115.77 to $105.00 per barrel during the period under review.
“The main contributing factors are less demand for crude oil due to recession concerns, a resurgence of Covid-19 in China, (and) the decision by Opec and non-Opec members to increase oil production. In the absence of supply constraints, crude oil prices might have decreased further,” the department said.
The DMRE added that the average international product prices of petrol, diesel, illuminating paraffin and LPG had decreased during the period under review.
The latest prices that motorists will pay at respectively inland and coastal pumps are as follows: 93 octane - R24.99 and R24.34; higher 95 octane - R25.42 and R24.77; diesel 0.05% - R24.52 and R23.87; diesel 0.005% - R24.62 and R23.98; illuminating paraffin - R18.43 and R17.63.
