Johannesburg - While South African fuel prices remain stubbornly high in historical terms, motorists can at least look forward to lower petrol and diesel costs from Wednesday.
The Department of Mineral Resources and Energy (DMRE) has announced that the price of both grades of petrol will decrease by 71 cents per litre from June 7, while diesel will come down by between 80 cents (50ppm) and 84 cents (500ppm).
After the adjustments take effect you’ll pay R21.91 for a litre of 95 Unleaded petrol at the coast and R22.63 in the inland regions, where the cheaper 93 Unleaded will retail at R22.30.
The wholesale price of 50ppm diesel, meanwhile, will drop to R18.99 at the coast and R19.70 inland, although retail prices, which vary between outlets, will be a few rands higher.
How much will we save per tank?
Refuelling a compact car like a Suzuki Swift or Toyota Starlet, assuming you’re putting 32 litres into its 37 litre tank, will now cost R701 at the coast and R714 inland (93 ULP), a saving of R22.70 per tank.
Putting 50 litres into a medium car like a Toyota Corolla, or similarly sized sedan or SUV, will now cost R1 096 at the coast and R1 132 inland, which works out to R35.50 less for a tank.
If you’re putting 70 litres into a diesel-powered bakkie or SUV with an 80 litre tank, such as a Toyota Hilux or Fortuner, you can look forward to a saving of R56 per tank.
Weaker international oil prices during May were the driver of June’s fuel price cuts.
Were it not for the significantly weaker rand, which depreciated to an average of R18.98 from R18.13 the previous month, South Africans would be looking forward to much larger decreases of around R125 for petrol and R130 for diesel.
Click here to see how fuel prices are calculated, and the hefty tax penalty
Nonetheless the June decreases will still provide some relief to consumers who are already overstretched thanks to high interest rates and other rising costs.
However, the price cuts could also help slow general inflation in the long run, the Automobile Association said.
“The decreases to the price of diesel are especially welcome given that this fuel accounts for significant input costs across all sectors which are often passed on to consumers. A decrease to the price of this fuel is, therefore, welcome and timely.”