South African motorists feel relieved as fuel prices drop for the third month in a row and Petrol is down 15c/litre, while diesel is down 17-28c/litre.
(The Post News)- South African motorists have enjoyed three consecutive months of petrol price cuts, with prices almost returning to levels seen at the beginning of the year.
The latest cut announced on August 5 sees petrol prices drop by 15 cents per litre and diesel by 17–28 cents per litre.
This welcome relief is largely attributed to stable oil prices and a stronger rand/dollar exchange rate, partly due to the new government’s positive economic outlook.
The stronger rand makes importing fuel cheaper, allowing for reduced prices at the pump.
Despite a slight increase in Brent crude oil prices, petrol prices have dropped by R2.38 per litre since May, and diesel prices by R1.88 per litre since March.
This relief is substantial, almost completely reversing the 2024 petrol price increases.
However, since fuel prices remain vulnerable to global crude oil prices and exchange rate fluctuations the price might change.
The international oil market is volatile, and a weaker rand could lead to higher fuel prices again.
The Department of Petroleum and Mineral Resources reported that the average price of Brent crude oil rose from $82.24 to $83.55 per barrel during the review period.
This increase was primarily due to a decrease in US inventories, reduced production from Canada, tensions in the Middle East, and ongoing production cuts by OPEC.
To illustrate the relief in real terms, today an average South African driver saves R144 per tank by filling up with petrol 95 compared to May.
While this reduction is a significant respite for consumers and businesses, it’s crucial to remain cautious and prepared for potential price volatility.
The rand’s recent depreciation, which saw it fall close to 2% against the dollar on August 5, serves as a reminder of the potential risks.
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