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The prices of all grades of petrol will decrease by 92 cents a litre on Wednesday, while diesel will come down by 79c and R1.05 for both grades.
The fuel price adjustments for September were announced on Monday by the Department of Mineral Resources and Energy.
Spokesperson, Robert Maake, said illuminating paraffin will decrease by R1.03 and R1.38 for the SMNRP for illuminating paraffin.
The retail price of LP gas will come down by ten cents a kilogram.
The reasons given for the fuel price adjustments were:
The Department said the main reasons for the fuel price adjustments were:
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 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.
