Johannesburg - The Department of Mineral and Petroleum Resources has announced a significant decrease in fuel prices effective from July 3, 2024, marking the second consecutive month of reductions and providing relief for consumers amid economic pressures.

According to South African Police Service, the reduction in fuel prices is due to a combination of factors impacting the international market, including a decline in the average Brent Crude oil price from $82.98 to $82.24 per barrel. "The main contributing factors are the increased production by the US and other non-OPEC countries amid slow economic growth globally," the Department explained. Consequently, the average international product prices of petrol also saw a decrease, reflecting on the Basic Fuel Price (BFP) adjustments.

The new fuel prices for July are as follows: Petrol 93 (ULP and LRP) will decrease by R1.05 per liter, Petrol 95 (ULP and LRP) by 99 cents per liter, Diesel (0.05% sulphur) by 30 cents per liter, Diesel (0.005% sulphur) by 24 cents per liter, Illuminating Paraffin (wholesale) by 18 cents per liter, Single Maximum National Retail Price for Illuminating Paraffin by 24 cents per liter, and Maximum LP Gas Retail Price by 22 cents per liter.

Additionally, the Rand's appreciation against the US Dollar also played a role in the price adjustments. "The Rand appreciated slightly, on average, against the US Dollar (from 18.46 to 18.44 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 about 1.50 cents per liter on all products," the Department noted.

The new fuel prices will provide some financial relief for motorists and are expected to have a positive impact on the overall cost of living, as transportation costs are a significant component of household expenses.