Fuel prices are set to drop to their lowest level since January.
Nicola Mawson
Good news is on the cards for motorists on Wednesday, as fuel prices are set to drop to their lowest level since January, according to data compiled by MotorMatters.
The Department of Mineral Resources and Energy on Monday said 93 and 95 octane petrol will drop by 15c per litre, while 0.05% diesel decreases by 28c per litre, and 0.005% diesel eases by 17c per litre.
Inland prices at the pump will be: 93 octane R22.71, 95 R23.11, diesel 0.05% R20.38 and diesel 0.005% at R20.74.
Coastal prices will be: 93 octane petrol R21.92, 95 octane R22.32, diesel 0.05p at R19.59 and diesel 0.005% at R19.98.
The key driver behind the lower prices was a stronger rand, while the cumulative slate amounted to a positive balance of R1.8 billion for petrol and diesel as at the end of June 2024.
The rand appreciated on average against the dollar from R18.44 to R18.23 during the period under review when compared to the previous one.
Internationally, oil and fuel prices increased slightly, the department said. MotorMatters founder Alan Rosenmeyer said: “Following mixed news on fuel cuts in May, motorists have been benefiting from increasingly deeper declines in fuel prices, with the latest numbers boding well for cash-strapped consumers and inflation.”
Inflation for June would have come in at 4.9% instead of 5.1% were it not for the cost of fuel. Month-on-month, June inflation was 0.1 percentage point lower than in May.
In the middle of last month, the AA said: “Decreases offer immediate relief at the pumps, but those sectors affected by them don’t immediately adjust their prices downward and instead wait for more consistent fuel cuts that lower their input costs over time.”
Sbonelo Mbatha, the director and co-founder of PetroConnect, has said that implementing a quarterly review of local fuel prices, instead of once a month, could enhance stability and predictability for both consumers and businesses.
Giving the Opening of Parliament Address last month, President Cyril Ramaphosa announced that the GNU intended to review the make-up of the country’s fuel price.
Cape Times