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The Department of Mineral Resources and Energy announces the adjustment of fuel prices based on current local and international factors with effect from the 4th of September 2024.

South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs.

The main reasons for the fuel price adjustments are due to:

1.    Crude oil prices

The average Brent Crude oil price decreased from 83.55 US Dollars (USD) to 78.54 USD per barrel, during the period under review. The main contributing factors are the increased production from major oil-producing countries despite lower demand concerns, and the anticipated interest rate cuts by the US Federal Reserve.

2.    International petroleum product prices

The average international petroleum product prices decreased on average during the period under review in line with lower crude oil prices. This led to lower contributions to the Basic Fuel Prices of petrol by 85.59 c/l and 78.40 c/l, diesel by 93.55 c/l and 67.63 c/l and illuminating paraffin by 91.86 c/l, respectively.

3.    Rand/US Dollar exchange rate

The Rand appreciated on average, against the US Dollar (from 18.23 to 18.05 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of all products by over 10.00 cents per litre.

4.    Implementation of the Slate Levy

The cumulative slate amounted to a positive balance of R 2.13 billion for petrol and diesel of at the end of July 2024. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of zero cents per litre remain in the price structures of petrol and diesel with effect from the 4th of September 2024.

5.    Annual Wages Adjustment for the Forecourt Staff

The Minister of Mineral Resources and Energy approved a 5.3 c/l increase in the price structures of petrol to accommodate the wage increase for Forecourt employees in line with the Motor Industry Bargaining Council (MIBCO) Agreement. This increase will be implemented from the 4th of September 2024.

Based on current local and international factors, the fuel prices for September 2024 will be adjusted as follows:

Petrol 93 (ULP & LRP): Ninety-two cents per litre (92.00 c/l) decrease.

Petrol 95 (ULP & LRP): Ninety-two cents per litre (92.00 c/l) decrease.

Diesel (0.05% sulphur): Seventy-nine cents per litre (79.00 c/l) decrease.

Diesel (0.005% sulphur): One hundred and five cents per litre (105.00 c/l) decrease.

Illuminating Paraffin (wholesale): One hundred and three cents per litre (103.00 c/l) decrease.

SMNRP for IP: One hundred and thirty-eight cents per litre (138.00 c/l) decrease.

Maximum LPGas Retail Price: Ten cents per kilogram (10.00 c/kg) decrease; and

The fuel prices schedule for the different zones will be published on Tuesday, the 3rd of September 2024.

Issued by Department of Mineral Resources and Energy