Motorists can look forward to another month of relief at the pump as fuel prices decrease for the second consecutive month. SANews reports that petrol will see a decrease in price on 5 July, providing some respite for drivers.
According to the Department of Mineral Resources and Energy (DMRE), the anticipated price changes are as follows: 93-grade petrol will decrease by 24c. In comparison, the price of 95-grade petrol will go down by 17c. However, there will be a slight increase in the price of both grades of diesel, with Diesel 0.05% Sulphur going up by 18c and Diesel 0.005% Sulphur costing an additional 12c.
The news is more promising for illuminating paraffin and LP Gas users, as both will see a decrease in prices. Wholesale illuminating paraffin will go down by 4c, and the Single Maximum National Retail price for illuminating paraffin will decrease by 5c. The Maximum LP Gas Retail Price will also decrease by R2.96.
The DMRE explained these price changes, citing various factors influencing the market. During the review period, the average Brent Crude oil price experienced a slight decrease from USD 75.90 to 75.10 per barrel. Interestingly, while the average international product prices of petrol, diesel, and illuminating paraffin increased, the price of LPG decreased.
Furthermore, the Rand showed strength against the US Dollar, appreciating from R18.99 to R18.64 per USD during the review period compared to the previous one. This change resulted in lower contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin, reducing them by 19.77 c/l, 19.21 c/l, and 18.91 c/l, respectively. The stronger Rand played a significant role in positively affecting petrol prices and illuminating paraffin, ultimately leading to an overall decrease.
Motorists and consumers can expect the new pricing to take effect on Wednesday, offering some relief from the recent financial burden of high fuel costs.
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