Petrol and diesel prices set to decrease in July
South Africans can breathe a sigh of relief as the petrol price is set to come down in July thanks to a truce between USA and Iran.
THE growing fuel price has become a heavy burden for many South African motorists, but that weight is about to be lifted off their shoulders as the fuel price is set to decrease in July.
Data from the Central Energy Fund (CET) indicated a consistent downward trend in international oil prices throughout June, leading to significant over-recoveries for both petrol and diesel.
Also read: Rising fuel cost: How the basic fuel price is calculated
Projected adjustments
By the final week of June, the figures suggested that petrol prices were positioned for a decrease of over R3 per litre, while diesel figures showed potential drops between R4.68 and R5.12 per litre. However, these gross reductions will be altered as the National Treasury is ending its temporary relief on the fuel levy, which involves reintroducing R1.50 per litre to petrol and R1.97 per litre to diesel.
The official adjustments are as follows:
- Petrol 93 decreases by R2.01 per litre
- Petrol 95 decreases by R1.96 per litre
- Diesel 0.05% (wholesale) decreases by R3.14 per litre
- Diesel 0.005% (wholesale) decreases by R3.59 per litre
Stability in global oil market
The shift in pricing stems from developments in global oil markets. Stability returned to international supply chains following an agreement between the US and Iran regarding the Strait of Hormuz. This agreement allowed commercial vessels to resume safe transit through the passage, which serves as a primary route for global oil transport. The subsequent increase in crude oil availability on the international market helped lower prices, directly influencing the import costs reflected in South Africa’s fuel pricing model.
The Department of Mineral and Petroleum Resources will confirm the official adjustments soon as these new rates are scheduled to take effect on the first Wednesday of July.
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