Fuel prices drop: What motorists need to know
The Department of Mineral and Petroleum Resources has confirmed a third consecutive decrease in fuel prices.
The decrease is effective from Wednesday, 7 May, a development welcomed by the South African Petroleum Retailers Association (SAPRA).
Commenting on the announcement, SAPRA national vice-chairperson Lebo Ramolahloane said the reductions offer much-needed relief during a challenging economic period.
Welcoming the news, the proud association of the Retail Motor Industry Organisation (RMI) said this was a positive step for both motorists and the broader economy.
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'The decrease in petrol, diesel and illuminating paraffin prices provides immediate relief to South African motorists and businesses.
'In a fragile economy such as ours, this is a welcome development that could ease inflationary pressures and provide a short-term boost in consumer spending power,' said Ramolahloane.
With petrol set to decrease by 22 cents per litre and diesel by up to 42 cents per litre, the impact is tangible. LPG will be the only fuel to show an increase, at 46 cents per kilogram.
'For example, a motorist filling a 50 litre tank of 95 unleaded petrol will now save approximately R11 per fill. Diesel users, particularly in logistics and agriculture, stand to benefit from reductions of over R20 per tank,' he said.
Ramolahloane says these lower input costs can support food security and job retention in fuel-intensive sectors such as agriculture, logistics and public transport.
'For petroleum retailers, the increased volumes at service stations from consumers responding to lower pump prices are likely to provide a boost in revenue, particularly as retail margins remain stable,' he added.
He noted that the global oil market is being influenced by geopolitical factors, notably the recent escalation in trade tensions between the United States and China.
The re-imposition of tariffs by the US has disrupted oil demand, especially from China, a major Brent crude importer, leading to excess supply and driving prices down.
'While we welcome the current decline in prices, we must remain cautiously optimistic. Global market volatility and local political uncertainty under the GNU require close monitoring,' said Ramolahloane.
Fuel price adjustments are as follows:
PETROL:
• 93 ULP & LRP: decrease 22c/litre
• 95 ULP & LRP: decrease 22c/litre
DIESEL:
• 0.05% Sulphur: decrease 42c/litre
• 0.005% Sulphur: decrease 41c/litre
ILLUMINATING PARAFFIN:
• Wholesale: decrease 31c/litre
• SMNRP: decrease 41c/litre
LPG (Liquefied Petroleum Gas):
• Maximum retail price: increase 46c/kg
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