Diesel and petrol prices set to rise

Diesel and petrol prices set to rise

August 2, 2023

Businesses and motorists will have to fork out more at the pumps for fuel as the price of diesel and petrol is set to rise tomorrow, 2 August.

Minister of Mineral Resources and Energy Gwede Mantashe announced the latest adjustments to fuel prices based on current local and international factors on Monday.

According to the adjustments, the price of petrol for both 93 and 95 Octane will increase by 37 per litre (c/l); the price of diesel (0.05% sulphur) and diesel (0.005% sulphur) by 72.00 c/l and

71.00 c/l, respectively, while the price of illuminating paraffin (wholesale) is set to rise by 71c/l.

The maximum retail price of LP Gas will decrease by R1,61 c/kg.                                  

Mantashe said in a statement that the main reasons for the fuel price hikes were the increase in the Brent Crude oil price which rose from $75.10 to $79.75 during the period under review; the increasing demand for crude oil from China and India, and tightening supply due to continued production cuts by Saudi Arabia.

“Most analysts expect the supply constraints to increase prices in the next few weeks.

The average international product prices of petrol, diesel and Illuminating paraffin followed the increasing trend of crude oil prices during the period under review.

These led to higher contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 63.59 c/l, 99.09. c/l and 98.71c/l, respectively.

However, LP Gas decreased due to lower prices of propane and butane.”

Mantashe added that “the rand appreciated on average, against the US Dollar (from 18.68 to 18.26 Rand per USD) which led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 27.64 c/l, 27.36 c/l and 27.10 c/l, respectively.”

The cumulative slate balance on petrol and diesel as of the end of June 2023 had a positive balance of R2,69 million. There is therefore no slate levy applicable in the petrol and diesel price structure for August 2023.

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