Petrol prices will drop by 4c/ℓ from September 3, Mineral and Petroleum Resources Minister Gwede Mantashe has announced. The reduction applies to both unleaded (ULP) and lead replacement petrol (LRP), covering grades 93 and 95.

Meanwhile, 0.05% sulphur diesel will be cheaper by 56c/ℓ, while 0.005% sulphur diesel will cost 57c/ℓ less.

Wholesale illuminating paraffin will cost 37c/ℓ less, while the single maximum national retail price of illuminating paraffin will decrease in cost by 49c/ℓ.

The maximum retail price of liquid petroleum gas (LPG) will also decline by R1.32/kg, with a R1.51/kg decrease for LPG in the Western Cape.

Mantashe said one of the main reasons for the fuel price adjustments was that the Brent Crude oil price decreased from $69.06/bl to $67.01/bl during the period under review. The main contributing factors to this decrease was the increase in production by the Organization of the Petroleum Exporting Countries Plus (OPEC+) and by non-OPEC producers, along with slower global economic growth outlook and uncertain trade tariffs.

The average international prices of all petroleum products have decreased in line with the decrease in crude oil prices. This has led to lower contributions to the basic fuel prices (BFP) of petrol by 1.88c/ℓ, diesel by 54.35c/ℓ and illuminating paraffin by 35.54c/ℓ, respectively.

The prices of propane and butane also decreased during the period under review, Mantashe said.

The rand:dollar exchange rate also played a role. The rand appreciated slightly on average against the dollar from R17.76 to R17.73 during the period when compared to the previous one. This cushioned the prices by nearly 2c/ℓ on all products.

Meanwhile, the cumulative slate amounted to a positive balance of R3.26-billion for petrol and diesel at the end of July. In line with the provisions of the self-adjusting slate levy mechanism, the slate levy remains unchanged at 0c/ℓ in the price structures of petrol and diesel with effect from September 3.

The maximum refinery gate price and the maximum retail price for LPG that is imported through Saldanha Bay in the Western Cape province will be R13 490.04 and R33.79, respectively, effective from September 3.

The fuel prices schedule for different zones in the country will be published on September 2.