On Wednesday, South African drivers found themselves both angry and frustrated when they discovered that the expected petrol and diesel price drops were nowhere to be seen at gas stations across the country.
Typically, fuel price changes come into effect at midnight on the first Tuesday of every month.
Many motorists who waited to fill up their tanks, anticipating lower prices, were instead greeted by the same old prices at the pump.
So, what went wrong? According to Eyewitness News (EWN), Reggie Sibiya, CEO of the Fuel Retailers Association, explained that the Department of Mineral Resources and Energy had confirmed the price changes.
However, the necessary approval hadn’t been signed off by the minister in time.
The press release indicating the price decrease was supposed to take effect from July 3rd.
The situation was further complicated by recent changes in the government.
President Cyril Ramaphosa announced his new cabinet on Sunday, June 30th, with the new members only being sworn in on Tuesday, July 2nd.
The department responsible for fuel price adjustments has now been split into the Department of Electricity and Energy and the Department of Petroleum and Mineral Resources.
Finally, some relief came when the Central Energy Fund confirmed that the new fuel prices had been approved and signed off.
The updated prices would take effect from midnight on Wednesday, July 3rd.
Petrol and Diesel Price Changes
– Petrol 93: Decrease of 105 cents
– Petrol 95: Decrease of 99 cents
– Diesel 0.05%: Decrease of 30 cents
– Diesel 0.005%: Decrease of 24 cents
– Illuminating Paraffin: Decrease of 18 cents
Factors Influencing Fuel Prices
Fuel prices in South Africa are influenced by two main factors:
1. The international price of petroleum products, mainly driven by oil prices.
2. The rand/dollar exchange rate used in the purchase of these products.
Current Oil Prices and Exchange Rates
At the time of publishing, the Brent crude oil price stands at $86.36 per barrel.
The rand/dollar exchange rate is R18.48 to the dollar.
July 2024 Fuel Prices: Inland and Coastal
Here are the new petrol and diesel prices for July 2024:
Inland Prices
– Petrol 93: R22.86
– Petrol 95: R23.26
– Diesel 0.05%: R20.66
– Diesel 0.005%: R20.91
– Illuminating Paraffin: R15.02
Coastal Prices
– Petrol 93: R22.07
– Petrol 95: R22.47
– Diesel 0.05%: R19.87
– Diesel 0.005%: R20.15
– Illuminating Paraffin: R14.02
Motorists can finally breathe a sigh of relief with these new prices in effect, despite the initial frustration.
Business News
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