Petrol prices for all grades are expected to drop this June, bringing consumers relief.
Per the announcement by the Department of Mineral Resources and Energy (DMRE), petrol prices will be going down effective Wednesday, 05 June 2024
The decreases are as follows:
- Petrol 93 and 95 (ULP and LRP): R1,24 decrease.
- Diesel (0.05% sulphur): R1,18c decrease.
- Diesel (0.005% sulphur): R1,08c decrease.
- Illuminating Paraffin (wholesale): 80c decrease.
- Single Maximum National Retail Price for illuminating paraffin: R1,07 decrease.
- Maximum LP Gas Retail Price: R1,35 decrease.
- The department explained the factors influencing the adjustments in prices.
The main reasons for the fuel price adjustments are due to:
- Crude oil prices: Brent Crude oil dropped from $88.10 to $82.98 per barrel because of increased production in the US and other non-OPEC countries amidst a slow global economy.
- International petroleum product prices: Lower Brent crude oil prices and the release of US inventories before Memorial Day led to a drop in international product prices, decreasing the Basic Fuel Price (BFP) for petrol by 76.16 c/l, diesel by 60.00–71.00 c/l, and paraffin by 50.20 c/l.
- Rand/US Dollar exchange rate: The Rand strengthened against the Dollar, reducing Basic Fuel Prices by about 30.00 c/l for all products.
- Implementation of the Slate Levy: Due to a negative balance of R696.3 million for petrol and diesel, a slate levy of 4.38 c/l will apply from June 5, 2024, lowering prices by 17.54 c/l for both diesel and petrol.
Share your thoughts on this article and join the conversation on Twitter or Facebook.
(Visited 1,014 times, 1 visits today)
