The Department of Mineral Resources and Energy has announced new petrol and diesel price adjustments effective from Wednesday, 4 July 2024, with significant decreases across various fuel types.
Petrol prices: Here’s how much a litre may cost from Wednesday, 4 July 2024
PLEASE NOTE: The petrol price adjustments listed below are directly quoted from the Department of Energy’s monthly press release. Despite our best efforts to ensure accurate reporting, it is still the sole responsibility of the reader to double-check petrol prices. Swisher Post, its parent company, partners and affiliates shall not be held liable for any consequence that arises from the journalistic duties performed in sharing this content.
Starting from Wednesday, 4 July 2024, South African motorists will see a decrease in fuel prices.
The adjustments, as announced by the Department of Mineral Resources and Energy, are as follows:
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- Petrol 93 (ULP & LRP): Decrease by 105.00 cents per litre.
- Petrol 95 (ULP & LRP): Decrease by 99.00 cents per litre.
- Diesel (0.05% sulphur): Decrease by 30.38 cents per litre.
- Diesel (0.005% sulphur): Decrease by 24.38 cents per litre
Here is a look at the estimated petrol price changes expected on Wednesday, 4 July 2024:
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R23.20 | -R1.05 |
| Petrol 93 | R22.92 | -R0.99 |
| Diesel 0.05%* | R20.66 | -R0.30 |
| Diesel 0.005%* | R20.94 | -R0.24 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R22.41 | -R1.05 |
| Petrol 93 | R21.39 | -R0.99 |
| Diesel 0.05%* | R19.86 | -R0.30 |
| Diesel 0.005%* | R20.14 | -R0.24 |
Factors impacting petrol prices in July 2024
Several local and international factors have influenced the decrease in fuel prices for July 2024:
- Crude Oil 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.
- International Petroleum Product Prices: Following the decline in Brent Crude oil prices, the average international product prices for petrol also decreased. This resulted in a lower contribution to the Basic Fuel Price (BFP) for petrol, ranging from 93.66 to 99.65 cents per litre, and for diesel by 17.55 to 23.80 cents per litre. Illuminating paraffin saw a decrease of 16.87 cents per litre.
- Rand/US Dollar Exchange Rate: 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.
- Implementation of the Slate Levy: 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.
- Octane Differentials Between 95 and 93 Petrol Grades: Adjustments in the Basic Fuels Prices (BFP) octane differential, which is reviewed quarterly, resulted in varying retail prices for 95 and 93 octane petrol grades across different fuel-pricing zones. This adjustment further influenced the price reductions effective from 4 July 2024.
Fuel-saving tips to cushion the blow
To mitigate the impact of rising fuel costs, consumers can adopt several fuel-saving strategies.
Regular vehicle maintenance, such as ensuring tyres are properly inflated, can improve fuel efficiency. Planning routes to avoid congestion and reduce idle times, along with adopting smoother driving habits, can also lead to significant savings.
Additionally, carpooling and the use of more fuel-efficient vehicles or alternative modes of transportation, such as cycling or public transport, can further help manage and reduce overall fuel expenditure.
Currency Fluctuations and International Prices
The recent period between 02 February 2024 and 29 February 2024 saw a depreciation of the Rand against the US Dollar, moving from an average of 18.7655 to 19.0186.
This depreciation, alongside increases in the average international product prices for Petrol, Diesel, and Illuminating Paraffin, contributed to higher Basic Fuel Prices.
These economic factors are instrumental in determining the cost adjustments, impacting both the industry and the consumer market.
Retail and Refinery Cap Adjustments
The Single Maximum National Retail Price (SMNRP) for illuminating paraffin was set at 2,137.0 c/l for the period leading up to 02 April 2024, marking an increase from the previous period’s price cap.
Additionally, the Maximum LPGas Refinery Gate Price was determined to be R 15,387.93 per metric ton, excluding VAT, for the same period, indicating a strategic pricing decision aimed at stabilizing the LPGas market.
What goes into the final retail price of fuel in South Africa?
Determining the final retail price of petrol in South Africa relies heavily on the rand’s performance in currency markets and oil price movements.
Using this information, the CEF can formulate basic fuel price (BFP) estimates which, in essence, offer South African importers a snapshot into the cost of buying petrol from an international refinery, transporting the product and ensuring it against possible losses at sea and on land.
However, before the retail price of petrol is finalised at petrol stations, several additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and injecting it into IP to curtail the mixing of IP and diesel)
- General Fuel levy (tax levied by the government)
- Slate levy (to finance the cumulative under-recovery of the industry)
- RAF levy (to compensate for people involved in road crashes and accidents)
- Petroleum products levy (reimbursement to the pipeline users for the applicable NERSA tariff on transporting fuel through the pipeline)
Additional costs
- Wholesale margin (markup to the price of a product to account for wholesaling costs)
- Service cost recoveries
- Storage, handling and delivery costs
- Distribution costs
- Dealers margin (commission to the fuel pump dealers for retail operation)
- Zone differential (applicable to inland regions)
- Customs and excise duty
Petrol price adjustments are generally made on the first Wednesday of every month by the Department of Energy.
