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Tuesday, 02 July 2024 21:03

Motorists can breathe a sigh of relief with a drop in petrol and diesel prices.

By Lehlohonolo Lehana.

The Department of Mineral Resources and Energy (DMRE) has announced the price of 93 octane will decrease by R1.05 and 95 octane petrol will drop by 99 cents per litre from Wednesday, 3 July.

The price of diesel (0.05% sulphur) will be cut by 30 cents per litre, while diesel with 0.005% sulphur will drop by 24 cents per litre. Illuminating paraffin will cost 18 cents less per litre, while the price of LP Gas decreases by 22 cents per kilogram.

The department said there were several factors that contributed to the decreases in petrol and diesel prices.

The average Brent Crude oil price fell from $82.98 to $82.24 per barrel during the review period.

"This decrease was mainly due to increased production by the US and other non-OPEC countries, coupled with slow global economic growth. This reduction in crude oil prices directly contributed to lower petrol and diesel prices."

The department said the Rand appreciated slightly against the US dollar, averaging R18.44 per USD compared to the previous period’s R18.46 per USD.

"This minor appreciation led to a reduction of approximately 1.50 cents per litre in the BFP of all products, contributing to the overall decrease in fuel prices."

The department added that the cumulative slate balance for petrol and diesel was negative R1.15 billion at the end of May 2024.

"Consequently, a slate levy of zero cents per litre will be applied to the price structures of petrol and diesel from 4 July 2024, resulting in a decrease of 4.38 cents per litre for both fuels," it said.