The Department of Mineral Resources and Energy (DMRE) has welcomed the reduction of international petroleum product prices, including crude oil prices, saying it will result in lower fuel prices for South Africans.

By close of business on Monday, the price of Brent crude oil was hovering around $105 per barrel, a reduction on average of about 10% compared to the average price for June.

Government has for the past four months cushioned South Africans from the vagaries of the oil market and the full impact of the high international oil prices.

A temporary reduction in the general fuel levy of R1.50 per litre was introduced from April 6 to July 5. This was reduced to 75c per litre from July 6 to August 2.

In a statement, the department says: “Despite this reprieve coming to an end on August 2, the department can confirm that there will still be a sizeable reduction in fuel prices including paraffin for South Africans”.

A formal announcement in this regard will be made by the end of the week.

As was undertaken in April 2022, consultation on the introduction of the price cap for 93 Octane fuel has formally been initiated. This price cap will allow for the fuel suppliers who can pass the benefit to the consumer to do so.

The department says no disruptions are expected in the fuel market as 93 Octane accounts for a small portion of the market, however this will allow the department to monitor how the market will react to the capping of the price. – SAnews.gov.za