June 2024 Diesel price

The Minister of Mineral Resources and Energy, Mr Gwede Mantashe announces the adjustment of fuel prices based on current local and international factors with effect from the 5th of June 2024. South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs.

The main reasons for the fuel price adjustments are due to:

1. Crude oil prices

The average Brent Crude oil price decreased from 88.10 US Dollars (USD) to 82.98 USD per barrel, during the period under review. The main contributing factors are the increased production by the US and other non-OPEC countries on the back of a slow or declining global economy.

2. International petroleum product prices

The average international product prices decreased following the lower brent crude oil prices during the period under review. Furthermore, petrol prices were also affected by the release of inventories by the US ahead of the Memorial holiday. The movement in product prices has led to a lower contribution to the Basic Fuel Price (BFP) of petrol by 76.16 c/l, diesel by 60.00 – 71.00 c/l and illuminating paraffin by 50.20 cents per litre.

3. Rand/US Dollar exchange rate

The Rand appreciated, on average, against the US Dollar (from 18.90 to 18.45 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 30.00 cents per litre on all products.

4. Implementation of the Slate Levy

The cumulative slate amounted to a negative balance for petrol and diesel of R R696.3 million at the end of April 2024. In line with the provisions of the Self Adjusting Slate Levy Mechanism, a slate levy of 4.38 c/l will be applicable in the price structures of petrol and diesel with effect from the 5th of June 2024, which is a decrease of 17.54 cents per litre on the prices of both diesel and petrol. Based on current local and international factors, the fuel prices for May 2024 will be adjusted as follows: ❖ Both grades of Petrol 93 and 95 (ULP & LRP): One hundred and twenty-four cents per litre (124.00 c/l) decrease. ❖ Diesel (0.05% sulphur): One hundred and eighteen point five four cents per litre (118.54 c/l) decrease. ❖ Diesel (0.005% sulphur): One hundred and eight point five four cents per litre (108.54 c/l) decrease. ❖ Illuminating Paraffin (wholesale): Eighty cents per litre (80.00 c/l) decrease. ❖ SMNRP for IP: One hundred and seven cents per litre (107.00 c/l) decrease. ❖ Maximum LPGas Retail Price: One hundred and thirty-five cents per kilogram (135.00 c/kg) decrease;