The Department of Mineral Resources and Energy recently announced adjustments to petrol and diesel prices effective from Wednesday, 5 June 2024
Petrol prices: Here’s how much a litre may cost from Wednesday, 5 June 2024
PLEASE NOTE: The petrol price adjustments listed below are directly quoted from the Department of Energy’s monthly press release. Despite our best efforts to ensure accurate reporting, it is still the sole responsibility of the reader to double-check petrol prices. Swisher Post, its parent company, partners and affiliates shall not be held liable for any consequence that arises from the journalistic duties performed in sharing this content.
From the start of June, motorists will pay less for fuel at the pumps, with a considerable decrease in the cards.
Specifically, the price for 93 ULP and LRP petrol and 95 ULP and LRP petrol will drop by R1.24 per litre.
This adjustment comes as part of the monthly review and consideration of factors such as global crude oil prices and the exchange rate.
For diesel, the price adjustments in June 2024 are differentiated by the sulphur content in the diesel.
Specifically, diesel with 0.05% sulphur will see a drop of R1.19 per litre, while diesel with 0.005% sulphur will decrease by R1.09 per litre in wholesale prices.
Here is a look at the estimated petrol price changes expected on Wednesday, 5 June 2024:
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R24.25 | -R1.24 |
| Petrol 93 | R23.91 | -R1.24 |
| Diesel 0.05%* | R20.96 | -R1.19 |
| Diesel 0.005%* | R21.18 | -R1.09 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R23.46 | -R1.24 |
| Petrol 93 | R22.38 | -R1.24 |
| Diesel 0.05%* | R20.16 | -R1.19 |
| Diesel 0.005%* | R20.38 | -R1.09 |
Factors impacting petrol prices in June 2024
Several key elements have contributed to the adjustments in petrol and diesel prices for June.
- The average international product prices for Petrol, Diesel and Illuminating Paraffin decreased during the period under review. The Rand appreciated 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 26 April 2024 to 30 May 2024 was 18.4664 compared to 18.9036 during the previous period. This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 30.91 c/l, 29.90 c/l and 30.03 c/l respectively.
- The combined cumulative petrol and diesel Slate balances at the end of April 2024 amounted to a negative balance of R 696.3 million. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 4.38 c/l (decrease of 17.54 c/l) has been implemented into the price structures of petrol and diesel with effect from 05 June 2024.
- The Single Maximum National Retail Price for the period 05 June 2024 to 02 July 2024 will be 1 947.0 c/l compared to 2 054.0 c/l for the period 01 May 2024 to 04 June 2024.
- The maximum refinery gate price will be R 13 880.57 per metric ton (770.372 c/l), excluding VAT, for the period 05 June 2024 to 02 July 2024.
Fuel-saving tips to cushion the blow
To mitigate the impact of rising fuel costs, consumers can adopt several fuel-saving strategies.
Regular vehicle maintenance, such as ensuring tyres are properly inflated, can improve fuel efficiency. Planning routes to avoid congestion and reduce idle times, along with adopting smoother driving habits, can also lead to significant savings.
Additionally, carpooling and the use of more fuel-efficient vehicles or alternative modes of transportation, such as cycling or public transport, can further help manage and reduce overall fuel expenditure.
Currency Fluctuations and International Prices
The recent period between 02 February 2024 and 29 February 2024 saw a depreciation of the Rand against the US Dollar, moving from an average of 18.7655 to 19.0186.
This depreciation, alongside increases in the average international product prices for Petrol, Diesel, and Illuminating Paraffin, contributed to higher Basic Fuel Prices.
These economic factors are instrumental in determining the cost adjustments, impacting both the industry and the consumer market.
Retail and Refinery Cap Adjustments
The Single Maximum National Retail Price (SMNRP) for illuminating paraffin was set at 2,137.0 c/l for the period leading up to 02 April 2024, marking an increase from the previous period’s price cap.
Additionally, the Maximum LPGas Refinery Gate Price was determined to be R 15,387.93 per metric ton, excluding VAT, for the same period, indicating a strategic pricing decision aimed at stabilizing the LPGas market.
What goes into the final retail price of fuel in South Africa?
Determining the final retail price of petrol in South Africa relies heavily on the rand’s performance in currency markets and oil price movements.
Using this information, the CEF can formulate basic fuel price (BFP) estimates which, in essence, offer South African importers a snapshot into the cost of buying petrol from an international refinery, transporting the product and ensuring it against possible losses at sea and on land.
However, before the retail price of petrol is finalised at petrol stations, several additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and injecting it into IP to curtail the mixing of IP and diesel)
- General Fuel levy (tax levied by the government)
- Slate levy (to finance the cumulative under-recovery of the industry)
- RAF levy (to compensate for people involved in road crashes and accidents)
- Petroleum products levy (reimbursement to the pipeline users for the applicable NERSA tariff on transporting fuel through the pipeline)
Additional costs
- Wholesale margin (markup to the price of a product to account for wholesaling costs)
- Service cost recoveries
- Storage, handling and delivery costs
- Distribution costs
- Dealers margin (commission to the fuel pump dealers for retail operation)
- Zone differential (applicable to inland regions)
- Customs and excise duty
Petrol price adjustments are generally made on the first Wednesday of every month by the Department of Energy.