June 2024 Fuel Price - Relief At The Pumps

The Department of Mineral Resources and Energy has announced the latest official fuel price adjustments, set to take effect from today, Wednesday 5 June 2024.

Throughout May, fuel price recoveries have favored motorists, with both petrol and diesel experiencing significant over-recoveries.

As a result, there is a welcome reduction at the pumps, with petrol prices dropping by R1.24 per litre and diesel prices decreasing between R1.09 and R1.19 per litre.

Jo Stone, CEO of Sandton Debt Counselling says that this is a very welcome and long awaited decrease. Stone says "many of our clients were struggling to fill up their tanks and keep buying the same groceries they usually bought as the increase in fuel has a direct impact on the average cost of the basic household food basket" 

The period under review saw a decline in the average international product prices for Petrol, Diesel, and Illuminating Paraffin.

Additionally, the Rand strengthened against the US Dollar, with the average exchange rate from 26 April 2024 to 30 May 2024 at 18.4664, compared to 18.9036 in the previous period.

This currency appreciation resulted in a reduction in the Basic Fuel Prices by 30.91 c/l for petrol, 29.90 c/l for diesel, and 30.03 c/l for illuminating paraffin.

At the end of April 2024, the combined cumulative petrol and diesel Slate balances showed a negative balance of R696.3 million.

Following the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 4.38 c/l (a decrease of 17.54 c/l) has been incorporated into the price structures of petrol and diesel effective 5 June 2024.

The following table shows how the price changes will be reflected at the pumps (note that diesel prices reflect wholesale rates, so pump prices may vary):

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