South Africa Sees Significant Drop in Fuel Prices for June 2024

South Africa’s motorists can breathe a sigh of relief as the Department of Mineral Resources and Energy announces a substantial decrease in fuel prices set to take effect from Wednesday, 5 June 2024. The latest adjustments reveal a noteworthy drop in both petrol and diesel prices, offering some respite to consumers.

The Central Energy Fund’s predictions have come to fruition, with petrol prices expected to decrease by R1.24 per litre and diesel prices by R1.09 to R1.19 per litre. This downward trend in fuel prices has been welcomed by many who have been waiting for a more wallet-friendly fill-up at the pumps.

Throughout May, the Department closely monitored global refined oil prices and the Rand/US Dollar exchange rate to determine the new fuel prices. The average international product prices for petrol, diesel, and Illuminating Paraffin decreased during the period under review, contributing to the overall drop in fuel costs.

The Rand’s appreciation against the US Dollar played a significant role in influencing the Basic Fuel Prices, resulting in a reduction in the petrol, diesel, and illuminating paraffin prices. Additionally, the implementation of a Slate Levy of 4.38 c/l under the Self-Adjusting Slate Levy Mechanism will further alleviate the financial burden on consumers.

With the combined cumulative petrol and diesel Slate balances showing a negative balance, the adjustment in the Slate Levy aims to balance out these figures and ensure a fair pricing structure. This move by the Department reflects a commitment to providing transparent and competitive fuel prices for South African motorists.