By Lehlohonolo Lehana.
The Department of Mineral Resources and Energy (DMRE) has announced the fuel price adjustments for September on Monday.
Both unleaded petrol 93 and 95 will be cut by 92c a litre. Wholesale diesel prices will be lowered by R1.05 (0.005% sulphur) and 79c (0.05% sulphur). The wholesale price of illuminating paraffin will be cut by R1.03/litre.
The latest cuts bring petrol (95) to R22.19 a litre in Gauteng, and R21.40 on the coast. These are the cheapest levels since February 2023.
The Gauteng wholesale diesel price will be R19.59 a litre from Wednesday, and R18.80 on the coast, the lowest since June 2023.
South African fuel prices are largely determined by international oil and fuel costs and the rand exchange rate, as oil is priced in dollars.
The average Brent Crude oil price decreased from 83.55 US Dollars (USD) to 78.54 USD per barrel, during the period under review. The main contributing factors are the increased production from major oil-producing countries despite lower demand concerns, and the anticipated interest rate cuts by the US Federal Reserve.
The average international petroleum product prices decreased on average during the period under review in line with lower crude oil prices. This led to lower contributions to the Basic Fuel Prices of petrol by 85.59 c/l and 78.40 c/l, diesel by 93.55 c/l and 67.63 c/l and illuminating paraffin by 91.86 c/l, respectively
The Rand appreciated on average, against the US Dollar (from 18.23 to 18.05 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of all products by over 10.00 cents per litre.
The cumulative slate amounted to a positive balance of R 2.13 billion for petrol and diesel of at the end of July 2024. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of zero cents per litre remain in the price structures of petrol and diesel with effect from the 4th of September 2024.
The Minister of Mineral Resources and Energy Gwede Mantashe approved a 5.3 c/l increase in the price structures of petrol to accommodate the wage increase for Forecourt employees in line with the Motor Industry Bargaining Council (MIBCO) Agreement. This increase will be implemented from the 4th of September 2024.