South African motorists will see lower fuel prices from 1 July following a drop in global oil prices and a stronger rand. The Department of Mineral and Petroleum Resources announced the cuts on 30 June.
Petrol prices will drop by R2.01 per litre for 93 grade and R1.96 for 95 grade. Diesel will fall by R3.14 per litre. The changes take effect at midnight on 30 June.
The department attributed the reductions to Brent crude oil prices declining from $104.59 to $86.53 per barrel in June. A stronger rand, averaging R16.38 per dollar, also contributed. The moves follow a memorandum of understanding between the US and Iran that improved supply outlooks.
Mineral and Petroleum Minister Gwede Mantashe announced the price cuts during an address to the National Union of Mineworkers central committee. He noted that recent increases stemmed from Middle East conflict while the current decreases reflect improved conditions.
May consumer price inflation stood at 4.5 percent, below expectations. The price relief is expected to ease upward pressure on inflation ahead of the Reserve Bank’s next interest rate decision.
