Durban - South African consumers already feeling the pinch of increases to electricity, water and food costs will this week be hit with another blow to their pockets as the price of petrol and diesel will also increase.
The Department of Mineral Resources and Energy said the price of petrol will increase by 29 cents a litre and diesel by 42 cents a litre from Wednesday.
The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, the adjustment of fuel prices was based on current local and international factors.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors, the department said.
International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.
Mantashe said the main reasons for the fuel price adjustments are due to, among other reasons, the fact that the average Brent Crude oil price increased from 66.00USD to 73.00USD per barrel during the period under review.
The higher oil prices are mainly due to inventory decline as reported by the International Energy Agency and concerns about the spread of the latest coronavirus variant globally.
However, the market is optimistic that OPEC may decide to ease the oil production cuts during its next meeting.
In addition, the movement in international refined petroleum product prices followed the increasing trend in crude oil prices. This led to higher contributions to the Basic Fuel Price of petrol by 36.74 c/l and 39.81 c/l, diesel by 52.33 c/l and 51.63 c/l and illuminating paraffin by 45.76 c/l.
Also noted for the increase was that the Rand appreciated slightly, on average, against the US Dollar (from 14.11 to13.92 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 about 10.00 cents per litre,” the department said in a statement.
Based on current local and international factors, the fuel prices for July 2021 will be
adjusted as follows:
- Petrol (both 93 ULP and LRP): twenty nine cents per litre (29.00 c/l) increase
- Petrol (both 95 ULP and LRP): twenty six cents per litre (26.00 c/l) increase;
- Diesel (0.05% sulphur): forty two cents per litre (42.00 c/l) increase;
- Diesel (0.005% sulphur): forty one cents per litre (41.00 c/l) increase;
- Illuminating Paraffin (wholesale): thirty six cents per litre (36.00 c/l) increase;
- SMNRP for IP: forty eight cents per litre (48.00 c/l) increase;
- Maximum LPGas Retail Price: sixty three cents per kilogram (63.00 c/kg) increase.
IOL