Fuel prices in South Africa have been adjusted downward from Wednesday, March 5 following a decline in international oil prices, the Department of Mineral Resources and Energy has announced.
According to the department, the decreases are as follows:
- Diesel (0,05% sulphur): 17,5 cents per litre (c/l)
- Diesel (0,005% sulphur): 23,5 c/l
- Illuminating paraffin (wholesale): 6 c/l
- Single maximum national retail price for illuminating paraffin: 8 c/l
- Maximum retail price of liquified petroleum gas: 2 c/kg
- Unleaded (ULP) and lead replacement (LRP) petrol: 93,7 c/l
- 95 ULP and LRP: 7 c/l
The department attributes the fuel price reductions to a drop in the average Brent Crude oil price, which fell from US$77,41 (R1 415,83) to US$74,89 (R1 369,74) per barrel during the review period. The decline was primarily driven by lower global demand and an oversupply of crude oil from non-OPEC countries. Additionally, ongoing ceasefire negotiations between Russia and Ukraine have raised the possibility of increased global crude oil supply.
Despite the overall decline in crude oil prices, international petroleum product prices experienced upward pressure due to refinery shutdowns and maintenance in the US in preparation for the seasonal switch to summer fuel grades. As a result, petrol and illuminating paraffin saw increased contributions to basic fuel prices of 6,92 c/l and 8,09 c/l respectively while diesel followed the crude oil price trend with a decrease of 7,66 c/l.
The rand’s performance against the US dollar also contributed to the adjustments. The local currency appreciated from an average of R18,73 to R18,50 per dollar during the period under review. This led to lower contributions to the basic prices of petrol, diesel and illuminating paraffin by 13,54 c/l, 14,45 c/l and 14,15 c/l respectively.
