Fuel Prices Drop Significantly in South Africa
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South African motorists can breathe a little easier this month after significant fuel price decreases came into effect on Wednesday, July 1. Petrol prices came down by R1.96 for 95 Unleaded and R2.01 for 93 Unleaded, while diesel costs fell by between R3.14 for 500ppm diesel and R3.58 in the case of 50ppm.
Putting 30 litres of petrol into a small hatchback will save around R60 per tank, while a 50 or 60-litre refuel in a midsize SUV will see motorists saving around R100 to R120 per tank. But it’s diesel customers that stand to save the most, with a 70-litre refuel – given that most bakkies and related SUVs have 80-litre tanks – saving up to R1,936 per refuel!
Calculations are based on 95 Unleaded petrol (coast), 93 Unleaded petrol (inland) and respective retail price estimations of R26.91 and R27.66 for 50ppm diesel.
For the record, a litre of 95 Unleaded currently costs R25.23 at the coast and R26.11 in Gauteng, where 93 Unleaded retails for R25.94. The wholesale price of 500ppm diesel has declined to R23.91 at the coast and R24.78 inland, with the respective prices for 50ppm falling to R24.41 and R25.16.
It has been a punishing few months for South African motorists, with fuel prices climbing sharply since April and adding significant pressure to household and transport budgets. While July is set to bring some welcome relief at the pumps, the forces behind the latest price adjustment are complex, and the outlook beyond this month remains uncertain.
A ceasefire agreed between the US and Iran earlier this month helped ease international oil prices after a period of heightened volatility. Although that truce appears fragile at times, oil prices continue to trade close to pre-war levels and, if these trends continue, there is a good chance that motorists could see more relief in August.
Conversely, any sustained rise in international oil prices, particularly if accompanied by a weaker rand, could quickly erode the recent gains and push South African fuel prices higher again in the coming months.
According to month-end data from the Central Energy Fund (CEF), petrol built up substantial over-recoveries of up to R3.07 during the past review period, while diesel pushed into the green by up to R5.12. These were the savings we could have seen at the pumps, had the government’s temporary fuel tax reprieve not come to an end. From this month, the General Fuel Levy returns to its full rate of R4.29 per litre for petrol and R4.16 per litre for diesel.