The Department of Mineral Resources and Energy has announced significant price cuts for all grades of fuel in South Africa which will come into effect tomorrow, 5 June 2024.
Both petrol 93 and 95 are dropping by R1.24 per litre putting them back below the R25 threshold, while diesel is going down by a maximum of R1.19 a litre.
A joyful June
During May, the average international product prices for petrol and diesel decreased off the back of lower oil prices.
One barrel of Brent Crude traded for $89.50 on 26 April and dropped to $81.86 by 30 May, as a result slashing 76c/litre from the domestic cost of petrol and between 60-71c per litre from diesel, depending on the type.
Compounding these gains, the rand appreciated against the US Dollar during May in comparison to the preceding month.
The average Rand/US Dollar exchange rate for the period of 26 April to 30 May stood at R18.4664/dollar, notably lower than the R18.9036/dollar of the previous period.
This led to a lower contribution to the Basic Fuel Prices of petrol and diesel by 30.91c/l and 29.90c/l, respectively.
The combined cumulative petrol and diesel Slate balances at the end of April 2024 further amounted to a negative balance of R696.3 million.
Consequently, in line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy reduction of 17.54c/l to 4.38c/l has been implemented into the price structures of petrol and diesel for June.
These inputs accounted for, fuel prices in South Africa this Wednesday are being adjusted as follows:
- Petrol 93 – Decrease of R1.24 a litre
- Petrol 95 – Decrease of R1.24 a litre
- Diesel 0.05% – Decrease of R1.19 a litre
- Diesel 0.005% – Decrease of R1.09 a litre
The following table shows how the official fuel price changes for June will reflect at the pump:
| Fuel type | Gauteng | Coastal |
|---|---|---|
| Petrol 93 | R23.91 | R23.12 |
| Petrol 95 | R24.25 | R23.46 |
| Diesel 0.05% | R20.96 | R20.17 |
| Diesel 0.005% | R21.15 | R20.39 |
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