Fuel price crunch

Monday, July 4, 2022

The Department of Mineral Resources and Energy (DMRE) has announced a price increase of at least R2.30 for all fuel variants from Wednesday.

The price of illuminating paraffin is also expected to go up with gas prices showing a decrease.

The price adjustments are as follows:

  • Petrol (both 93 ULP and LRP) will increase by R2.37 per litre;
  • Both grades of petrol 95 will increase by R2.57 per litre;
  • 0.05% sulphur diesel will increase by R2.31 per litre;
  • Diesel 0.005% sulphur will increase by some R2.30 per litre;
  • The price of wholesale illuminating paraffin will increase by R1.66 per litre;
  • The Single Maximum National Retail Price for illuminating paraffin will also increase by R2.21; and
  • The Maximum LP Gas Retail Price will decrease by R2.18 per kilogram.

 

The department explained the factors leading to the price adjustements.“The average Brent Crude oil price slightly increased from 115.00 US Dollars (USD) to 115.77 USD during the period under review. The average international product prices of petrol, diesel and Illuminating Paraffin increased during the period under review while the price of LPG decreased. The declining global refining capacity is having a negative impact on petroleum product prices.

“The Rand appreciated, on average, against the US Dollar (from 15.95 to 15.76) Rand per USD 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 19c,” the department said.

Furthermore, the temporary relief measure against increasing fuel prices announced by the DMRE and National Treasury has decreased from R1.50 to 75c with consumers to now carry that burden.

Gas prices reduced as a result of low seasonal demand in the Northern Hemisphere. – SAnews.gov.za