Fuel prices drop in June despite levy hike
The Department of Mineral and Petroleum Resources has confirmed a decrease in fuel prices for June.
Effective from Wednesday, both grades of petrol will decrease by 5 cents a litre, diesel by 36.9 cents per litre and illuminating paraffin at a retail level by 75 cents a litre.
The department’s Robert Maake said the average Brent Crude oil price decreased from $66.40 to $63.95 during the period under review.
The decrease comes amid the fuel levy increase announcement of 16 cents a litre for petrol and 15 cents a litre for diesel by Finance Minister Enoch Godongwana.
READ MORE: Budget 3.0: Godongwana hikes fuel levy
With the strengthening of the rand against the dollar during the period under review, the country has seen constant over-recovery in fuel prices throughout the month.
“The average international petroleum product prices of petrol increased due to the switching costs to summer fuel grade in preparation for the summer driving season in the Northern Hemisphere. The prices of diesel and illuminating paraffin followed the decreasing trend of crude oil,” said Maake.
Meanwhile, the Economic Freedom Fighters’ challenge to the fuel levy increase has been dismissed by the Western Cape High Court.
The party argued that only Parliament has the right to increase the fuel levy.
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