The Department of Energy said that this fuel drops results from lower oil prices. Oil decreased from $115 to $105 a barrel during the period under review. The Energy Department also said that if our Rand was it weaker we would’ve seen much steeper fuel price drops.
Weaker rand value took away about R1 from the currency of price adjustments and terminated the short-term relief measure of R0. 75 of the fuel levy.
Cosatu encourages our government to carry on with fuel levy tax relief, which contributes to the price o fuel. The reduction of fuel levy started in April 2022 in an attempt to give consumers a much fair fuel price. The energy department announced that fuel levy would drop from R1. 50 to R0. 75 in July 2022.
What’s more exciting is that the Department of Energy also announced that they in the middle of a process to deregulate the price of petrol in South Africa, which would help consumers see fuel price dropping up to R17.
The Department’s strategy is to allow fuel retailers to set their own fuel price, including fuel discounts and other marketing specials. This is still up for public comments and South Africans have been given 30 days to comment on this before it is fully implemented.