Motorists can expect to pay significantly less at the pumps in July, as a decrease in fuel prices takes effect tomorrow (Wednesday).

The price of illuminating paraffin is also forecast to drop by a significant margin.

The latest monthly fuel price adjustment was announced by the Department of Petroleum and Mineral Resources today, which takes into consideration decreases in international oil prices during June.

July fuel prices

· Petrol 93: Decrease of R2.01 per litre

· Petrol 95: Decrease of R1.96 per litre

· Diesel 0.05% (wholesale): Decrease R3.14 per litre

· Diesel 0.005% (wholesale): Decrease R3.59 per litre

· Illuminating paraffin (wholesale): Decrease R5.23 per litre

This means a litre of 95 unleaded will cost R25.23 at the coast, while inland motorists will pay R26.11. The price of 93 unleaded inland drops to R25.94 per litre.

Why are prices coming down?The decrease follows a sharp drop in international oil prices in June.

According to the official government website, 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 (MoU) between the USA and Iran, which has improved the global supply outlook,” said the site.

Other factors are that the average international product prices also dropped; the SA rand appreciated in value against the US dollar, from R16.52 to R16.38 per US dollar; the Slate Levy has also decreased – by 43.8 cents per litre, from 157.74c/l to 113.94c/l.

Fuel levies return

While fuel prices could have fallen even further, the government is ending the temporary fuel levy relief that was introduced in May.

This means part of the savings from lower oil prices has been offset by the return of fuel levies, resulting in smaller reductions than motorists might otherwise have received.

Even so, the latest adjustments still represent one of the biggest reductions seen in recent months.

Lower fuel prices not only reduce the cost of filling up, but also ease pressure on household budgets already stretched by rising food, transport and living expenses.

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