By Ncaba Ntshakala
It’s early Christmas for motorists as the Ministry of Natural Resources and Energy has announced another reduction in fuel prices, which is the second drop within just a month.
This welcome development, shared in a statement by Principal Secretary Lindiwe Mbingo, will see fuel costs decline across the board, effective from midnight today, Thursday, 3rd October 2024.
Consumers will enjoy lower prices starting Friday, 4th October 2024, with significant decreases in the cost of Diesel, Illuminating Paraffin, and Unleaded Petrol.
According to the Ministry’s statement, the price of diesel 50ppm S and Illuminating Paraffin will be reduced by E1.20 per litre, while the price of unleaded petrol will drop by 80 cents per litre.
RELATED: Petrol price rise warning after OPEC oil output cut
This adjustment comes from a combination of factors on the global oil market and currency exchange rates.
“The Ministry of Natural Resources and Energy hereby informs the public of a fuel price decrease,” reads the statement.
“In the month of September 2024, international oil prices decreased due to the declining global oil demand.
Brent crude oil traded at an average of US$73 a barrel, compared to an average of US$80 per barrel realised in August 2024.”
The decline in global oil demand has helped drive down crude oil prices, while the appreciation of the Lilangeni against the US Dollar has further contributed to this decrease.
The Ministry noted that the Lilangeni/Dollar exchange rate strengthened in September 2024, averaging E17.69, a notable improvement from the E18.15 average recorded in August.
The combined effects of falling crude oil prices and the stronger local currency have allowed the Ministry to pass these savings on to consumers.
RELATED: Petrol hike projected for May
As a result, the new fuel prices will be as follows: the price of Unleaded Petrol (ULP95) will drop from E20.60 per litre to E19.80 per litre; Diesel (0.005% S) will decrease from E21.40 per litre to E20.20 per litre; and Illuminating Paraffin will be reduced from E15.75 per litre to E14.55 per litre.
In its statement, the Ministry of Natural Resources and Energy also urged the public to continue using fuel efficiently, warning that both the international oil markets and the Lilangeni/Dollar exchange rate remain highly volatile.
While the current situation has allowed for a reduction in prices, there is no guarantee of stability in the months to come.
Fuel Old Price (Per Litre) New Price (Per Litre)
Unleaded Petrol (ULP 95) E20.60 E19.80
Diesel (0.005% S) E21.40 E20.20
Illuminating Paraffin E15.75 E14.55
