Relief for consumers as fuel prices fall after sharp hikes

Source: Magnific

The adjustments to prices from July are as follows:

• Petrol 93 (ULP and LRP): R2.01 decrease.
• Petrol 95 (ULP and LRP): R1.96 decrease.
• Diesel (0.05% sulphur): R3.13 decrease.
• Diesel (0.005% sulphur): R3.58 decrease.
• Illuminating Paraffin (wholesale): R5.23 decrease.
• Single maximum national retail price for Illuminating Paraffin: R6.97 decrease.
• Maximum Retail Price of LPGas: 16c/kg increase and nineteen cents per kilogram (19.00 c/kg) increase in the Western Cape.

This means that a litre of 95 petrol which currently costs R28.06 in Gauteng will now cost R26.10 as of Wednesday, 1 July. In the coast, the price will come down from R27.19 to R25.23 a litre.

“The average Brent Crude oil price decreased from $104.59 to $86.53 during the period under review. This is due to the signing of the Memorandum of Understanding between the US and Iran, which has improved global supply outlook.

“The average international product prices followed the decreasing trend of crude oil during the period under review. These factors led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 295.97 cents per litre, 498.47 cents a litre and 510.51 cents a litre, respectively. The prices of Propane and Butane increased during the period under review,” the department said.

During the same period, the Rand strengthened against the dollar from R16.52 to R16.38 per US dollar.

“This led to lower contributions to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin by 11.27c a litre, 13.75c a litre and 13.37c a litre respectively,” the department stated.

The DMPR also announced that the short-term fuel levy relief by government has “been phased out”.

“The short-term relief measures have been completely phased out and the full fuel levies of 429c per litre on petrol and 416c per litre on diesel will be reinstated,” the DMPR said.