NKANGALA – Motorists in Nkangala are breathing a sigh of relief as fuel prices dropped at midnight on Tuesday.
As of June 5, the price of all grades of fuel fell by an average of R1.12. Both unleaded petrol 93 and 95 (ULP and LRP) fell by R1.24, while diesel 0.05% sulphur and 0.005% sulphur decreased by R1.18 and R1.08, respectively. Illuminating paraffin decreased by R0.80, and LP Gas went down by R1.35.
The Department of Mineral Resources and Energy (DMRE) explained that the decline in fuel prices was due to decreased crude oil prices and an improved South African rand in relation to the United States dollar (USD).
“The average Brent crude oil price decreased from 88.10 USD to 82.98 USD per barrel during the period under review. The main contributing factors are increased production by the US and other non-OPEC (Organisation of the Petroleum Exporting Countries) members, on the back of a slow or declining global economy,” DMRE said in a statement.
“The rand appreciated, on average, against the USD, from 18.90 to 18.45 rand per USD, during the period under review compared to the previous one. This led to lower contributions to the basic fuel prices of all products by about 30 cents per litre.”
The price of petrol and diesel saw a tremendous increase about four years ago. Unleaded 93 petrol increased from R11.51 per litre in May 2020 to R25.15 in May 2024, while unleaded 95 petrol increased from R12.22 in May 2020 to R25.49 in May 2024. Diesel increased from R11.19 per litre to R22.24 over the same period.
When petrol and diesel prices increase, the costs of moving goods from farmers and factories to end-users also increase, pushing up food prices.
Some Highveld Chronicle readers expressed their reservations about the fuel price drop. “It should drop by R10 or more per litre,” said Yochanan Cootzee from Delmas. “Why not R2 at least?” asked an anonymous reader from Klipfontein in Emalahleni.
