South Africa fuel prices fall sharply from July 1
South African motorists are getting significant relief at the pumps from 1 July, as petrol and diesel prices fall sharply following a slide in global oil prices.
Petrol was cut by R2.01 a litre for 93 Unleaded and R1.96 for 95 Unleaded, while diesel dropped by R3.59 a litre for 50ppm and R3.14 for 500ppm, according to the official adjustment effective from Wednesday.
The relief is driven mainly by a fall in the oil price. Brent crude has eased to around $70 to $80 a barrel, down from a peak above $126 in late April. The decline followed a US-Iran ceasefire agreement in mid-June that reduced tensions in the Middle East and reopened the Strait of Hormuz, through which roughly a fifth of the world's seaborne oil passes. A relatively firm rand added to the savings.
The cuts came despite the phasing out of temporary fuel-levy relief introduced earlier in the year, which added a portion of the general fuel levy back onto the price. The scale of the drop in international oil prices was large enough to offset those increases and still leave motorists paying substantially less.
The lower prices offer welcome respite to households and businesses squeezed by high living costs, and could ease inflationary pressure in an economy where transport costs feed through into food and goods prices.
