Consumers will see their monthly budgets easing in the next month as the Minister of Mineral Resources and Energy, Gwede Mantashe, announced a slight drop in petrol prices.
The adjustments to fuel prices in South Africa are based on current local and international factors.
International factors include the fact that the country imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.
The department said that most fuel prices would be decreasing, with the exception of diesel.
Petrol users will enjoy a 24 cents per litre decrease for 93 ULP and LRP, while 95 ULP and LRP will decrease by 17 cents per litre.
Based on current local and international factors, the fuel prices for July 2023 will be adjusted as follows:
- Petrol (both 93 ULP and LRP): Twenty-four cents per litre (24.00 c/l) decrease,
- Petrol (both 95 ULP and LRP): Seventeen cents per litre (17.00 c/l) decrease,
- Diesel (0.05% sulphur): Eighteen cents per litre (18.00 c/l) increase,
- Diesel (0.005% sulphur): Twelve cents per litre (12.00 c/l) increase,
- Illuminating Paraffin (wholesale): Four cents per litre (4.00 c/l) decrease,
- SMNRP for IP: Five cents per litre (5.00 c/l) decrease,
- Maximum LPGas Retail Price: two hundred and ninety-six cents per kilogram (296.00 c/kg) decrease.
The price changes will take effect on Wednesday, July 5.
Prices for fuel differ inland and in the coastal regions of the country. The department said it would announce the fuel prices schedule for the different zones on Tuesday, July 4, 2023.
The average Brent Crude oil price decreased slightly from $75.90 to $75.10 per barrel 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,” the department said.
“The Rand appreciated, on average, against the US Dollar (from 18.99 to 18.64) 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 19.77 c/l, 19.21 c/l and 18.91 c/l, respectively. The stronger Rand affected petrol and Illuminating Paraffin prices positively, resulting in an overall decrease,” the department further stated.
BUSINESS REPORT