Official petrol price reductions for July announced

Tomorrow, 3 July, petrol prices in South Africa will drop by 99c per litre or more, while diesel is going down by a minimum of 24c per litre.

This follows a decrease in average international petroleum product prices in June and a reduction in the Slate Levy for July as a result of a more favourable macro-economic environment.

More relief ahead

According to the Department of Mineral Resources and Energy (DMRE), the average Brent Crude oil price decreased from US$82.98 per barrel to US$82.24 per barrel during June following heightened oil production by the US and other non-OPEC countries amid slow economic growth globally.

This movement caused a tumble in international petroleum product prices, which led to a lower contribution to the Basic Fuel Price (BFP) of petrol by 93.66–99.65c/l, and diesel by 17.55–23.80c/l.

Over the same period, the rand gained purchasing power against the US dollar, appreciating from R18.46/dollar to R18.44/dollar on average, however, this had minimal impact on the upcoming price adjustments.

At the end of May, the cumulative balance in the slate account amounted to negative R1.15 billion. Thus, in line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of zero cents per litre will be applicable in the price structures of petrol and diesel in July, reflecting a decrease of 4.38c per litre for all grades of fuel.

As per the Working Rules to determine the BFP, the BFP-differential between 95 and 93 octanes is adjusted on the first Wednesday of each quarter.

The BFP Octane differential has changed during the previous quarter and therefore the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone, said the DMRE.

As a result of these factors, the following fuel price changes will take effect in South Africa tomorrow, 3 July 2024:

• Petrol 93 – Decrease of R1.05 a litre
• Petrol 95 – Decrease of 99c a litre
• Diesel 0.05% – Decrease of 30c a litre
• Diesel 0.005% – Decrease of 24c a litre

The below table shows how the official fuel price changes for July will reflect at the pump: