Motorists are set for welcome relief at the pumps from Wednesday after Mineral and Petroleum Resources Minister Gwede Mantashe announced steep cuts to fuel prices for July.
The latest adjustment follows months of volatility in global oil markets and is expected to provide much-needed relief for motorists and businesses grappling with high transport costs.
From 1 July, the price of 93 unleaded petrol will decrease by R2.01 per litre, while 95 unleaded petrol will drop by R1.96 per litre. Diesel prices will also fall by up to R3.59 per litre, with illuminating paraffin declining by R5.23 per litre.
According to the department, the reductions were driven by a sharp decline in international crude oil prices and a stronger rand.
“The average Brent Crude oil price decreased from 104.59 US dollars to 86.53 US dollars during the period under review. This is due to the signing of the Memorandum of Understanding (MOU) between the US and Iran, which has improved the global supply outlook,” the department said.
It added that the rand also strengthened against the US dollar, further reducing the cost of imported fuel.
“The rand appreciated on average against the US dollar… This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin.”
Despite the sizeable cuts, government confirmed that the temporary fuel levy relief has now come to an end, with the full fuel levies being reinstated from 1 July.
The department also announced that the Slate Levy on petrol and diesel has been reduced from 157.74 cents to 113.94 cents per litre, while the maximum retail price of LPGas will increase slightly.