GOOD news is finally here for cash-strapped motorists!
Mineral and Petroleum Resources Minister Gwede Mantashe has announced a massive fuel price cut that will kick in from Wednesday, 1 July, bringing much-needed relief to millions of South Africans.
Petrol users will pay about R2 less per litre, while diesel motorists will enjoy even bigger savings of more than R3 a litre.
According to the Department of Mineral and Petroleum Resources, the price cuts are the result of lower international crude oil prices and a stronger rand against the US dollar.
The department said the average Brent crude oil price fell sharply during the review period after the signing of a memorandum of understanding between the United States (US) and Iran improved global oil supply expectations.
“The average Brent Crude oil price decreased from 104.59 US Dollars to 86.53 US Dollars during the period under review.
“This is due to the signing of the memorandum of understanding between the US and Iran, which has improved the global supply outlook,” the department said.
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The stronger rand also helped reduce fuel costs.
“The rand appreciated on average against the US Dollar, from 16.52 to 16.38 Rand per US Dollar during the period under review,” the department said.
From Wednesday, motorists can expect the following changes:
- Petrol 93: Down by 201 cents per litre
- Petrol 95: Down by 196 cents per litre
- Diesel (0.05% sulphur): Down by 313.8 cents per litre
- Diesel (0.005% sulphur): Down by 358.8 cents per litre
- Illuminating paraffin: Down by 523 cents per litre
However, not everyone will be celebrating.
The maximum retail price of LPG gas will increase by 16 cents per kilogram, while consumers in the Western Cape will pay 19 cents more per kilogram.
Although the government has reinstated the full fuel levy after ending temporary relief measures, motorists will still benefit from the sharp decline in global oil prices and lower international fuel costs.
