DMRE Minister, Gwede Mantashe, announced upcoming adjustments to fuel prices for the month of July 2022, seeing increases all round, except for a decrease in Maximum LPGas.
South African motorists need to brace themselves for yet another hike in fuel prices as the Minister of the Department of Mineral Resources and Energy (DMRE), Gwede Mantashe, has announced pending adjustments to fuel prices. The department issued a statement on Monday, 4 July 2022, confirming that the fuel adjustments are expected to take effect from Wednesday, 6 July 2022, based on the current local and international factors that are affecting them.
South African fuel prices are adjusted monthly and are informed by international and local factors. The DMRE has stated that international factors include the fact that the country imports both crude oil and finished products at prices set at the international level, and also includes importation costs.
The department has pointed out the main reasons for the fuel price adjustments, noting that the average Brent Crude oil price had increased slightly from $115 to $115.77 during the period under review. International petroleum product prices of petrol, diesel, and illuminating paraffin also increased in the period under review, while the price of liquefied petroleum gas (LPG) decreased. The rand/dollar exchange rate saw the South African Rand appreciate against the US Dollar, on average, from R15.95 to R15.76 during the period under review. This led to lower contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 19.99 cents a litre, 20.73 cents per litre, and 20.71 cents per litre, respectively.
The slate levy is to remain at 52.62 cents a litre and the retail prices of 95 and 93 petrol octanes will differ in each fuel-pricing zone. The temporary general fuel levy reduction will be implemented until 3 August 2022.
Petrol (both 93 ULP and LRP) is expected to increase by R2.37 a litre and petrol (both 95 ULP and LRP) will increase by R2.57 a litre. 0.05 percent sulphur diesel will increase by R2.31 for a litre, while 0.005 percent sulphur diesel increases by R2.30 a litre. Wholesale illuminating paraffin will increase by R1.66 a litre, the Single Maximum National Retail Price (SMNRP) for IP increases with R2.21 a litre, and the Maximum LPGas price will decrease with R2.18 for a litre. Minerals and Resources has stated that the fuel prices schedule for different time zones will be published today on Tuesday, 5 July 2022.
