Motorists can expect some relatively minor relief at the pumps from Wednesday, August 07, with price reductions confirmed for both petrol and diesel.
The Department of Mineral Resources and Energy (DMRE) has announced that both grades of petrol will come down by 15 cents per litre, while diesel will drop by between 17 cents (50ppm) and 28 cents (500ppm).
Following the adjustments on Wednesday, 95 Unleaded petrol will cost R22.32 at the coast and R23.11 in Gauteng, where the slightly less expensive 93 Unleaded will now retail for R22.71.
The wholesale price of 500ppm diesel will now be set at R20,38 at the coast and R19.59 inland, keeping in mind that retail margins will add a few rands to that, and will vary between outlets.
Filling your tank won’t be too much cheaper from Wednesday, as refuelling a smaller car with 30 litres will bring a saving of R4.50 while a larger 50 litre refuel in a medium sized vehicle will save you R7.50. However those filling up a larger diesel-powered bakkie or SUV with 75 litres could save up to R21.
What factors led to the decrease?
According to the DMRE, the average international prices for petrol and diesel decreased slightly during the preceding month, while the rand appreciated to an average of R18.23 to the US Dollar, from R18.44 the previous month.
With the price of Brent Crude Oil nearing eight-month lows after hitting $76 per barrel (R1,409) this week, further fuel price reductions for September are certainly possible should the downward trend continue.
Oil prices are currently weaker due to US recession fears, which are outweighing the geopolitical tensions in the Middle East, which usually place upward pressure on prices.
Petrol is currently 62 cents more expensive than it was in January, while 500ppm diesel is 50 cents cheaper, the latter boding well for keeping general inflation under control.
2024 has seen some drastic petrol price adjustments, rising by almost R3 between January and May, while June and July brought significant decreases.