petrol price hike
Fuel price increases announced. Photo: iStockPhoto

With international petroleum produce prices, including crude oil prices, dropping by around 10%, the SA Department of Mineral Resources and Energy (DMRE) says South Africans can expect a ‘sizeable reduction’ in fuel prices soon.

By close of business on Monday, the price of Brent Crude oil was hovering around $105 per barrel, a reduction on average of about 10% compared to the average price for June 2022.

The SA Government says it has, for the past four months, attempted to cushion South Africans from the full impact of high international oil prices (although the opposition party pointed out they could’ve done more – since a great amount of the price is government tax).

A temporary reduction in the general fuel levy of R1.50 per litre was introduced from 6 April 2022 to 5 July 2022. This was reduced to 75c per litre from 06 July 2022 to 02 August 2022.

In a statement today, the department said: “Despite this reprieve coming to an end on 2 August 2022, the department can confirm that there will still be a sizeable reduction in fuel prices including paraffin for South Africans”.

A formal announcement will be made by the end of the week.

As was undertaken in April 2022, consultation on the introduction of the price cap for 93 Octane fuel has formally been initiated. This price cap will allow for the fuel suppliers who can pass the benefit to the consumer to do so.

The department said no disruptions were expected in the fuel market as 93 Octane accounts for a small portion of the market, however this will allow the department to monitor how the market will react to the capping of the price. –