South African motorists and consumers will face another bleak month at the pumps and tills as the price of fuel will rise by more than R2 per litre again in July, with the price of petrol breaching R25 per litre for the first time ever.
SOUTH African motorists and consumers will face another bleak month at the pumps and tills as the price of fuel will rise by more than R2 per litre again in July, with the price of petrol breaching R25 per litre for the first time ever.
The Department of Mineral Resources and Energy on Monday announced that the price of petrol for both 93 and 95 ULP and LRP will increase by R2.37 and R2.57 per litre from midnight on Tuesday, respectively.
Diesel will increase by between R2.30 and R2.31 per litre while the wholesale price of illuminating paraffin will rise by R1.66 per litre.
However, the maximum LPGas Retail Price will go down by R2.18 per kilogram.
This is the fourth consecutive month of monthly fuel price increases since April when fuel prices were around R21.63 per litre following supply constraints due to the war in Ukraine and the subsequent Western sanctions on Russia.
Minerals Resources and Energy Minister Gwede Mantashe said the adjustment of fuel prices was based on current local and international factors.
Mantashe said the main reasons for the fuel price adjustments are due to average Brent crude oil price sightly increased from $115.00 dollars to $115.77 dollars during the period under review.
There has been an increasing demand for crude oil as China lifted Covid-19 restrictions while OPEC has reduced demand forecast due to recession fears which could lead to economic slow-down and less demand for crude oil.
The Russia/Ukraine war premium is still priced into the cost of crude oil.
The rand also appreciated, on average, against the US dollar, from R15.95 to R15.76/$1 during the period under review when compared to the previous one.
This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by R19.66 c/l, R20.73 c/l and R20.71 c/l respectively.
To ease the pressure on consumers, the government will implement the temporary reduction in the general fuel levy of 75 cents per litre until 3 August, which was announced due to the ongoing Russia – Ukraine conflict, which has affected fuel prices globally.
– BUSINESS REPORT
