The Department of Energy has published the official petrol and diesel price changes taking effect from 3 July 2019.
The price of petrol will see a price drop of 95 cents per litre and 96 cents per litre for 95 and 93 grades, respectively.
Diesel will be coming down by 75 cents per litre and 76 cents per litre for 0.05% sulphur content and 0.005% sulphur content, respectively.
Illumination paraffin will be cut by 57 cents per litre, and LP gas will be be reduced by R1.33 per kilogram.
The main driver behind the price reduction in July is the massive drop in international oil prices, and subsequently the average international product prices for Petrol, Diesel and Illuminating Paraffin decreased during the period under review.
The price drop could have been bigger, but the local currency’s weakness over the period did not help.
The rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period.
The average Rand/US dollar exchange rate for the period 31 May 2019 to 27 June 2019 was 14.6227 compared to 14.4127 during the previous period.
This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 9.78 c/l, 10.44 c/l and 10.49 c/l respectively.
Looking forward, the Automobile Association said that prime driver of fuel price movements for the third quarter of 2019 is likely to be the oil price.
The AA said current tensions between the USA and Iran could have severe ramifications.
“South Africa’s economy would be very badly affected if, as earlier in the decade, we were to return to sustained prices in excess of $100 per barrel. In such an environment, any event which affected the rand markedly would have a dire effect on fuel users,” it said.
Here are the official prices for next month:
|Fuel (Inland)||June Official||July Official|
|0.05% Diesel (wholesale)||R15.21||R14.46|