Petrol price to go up in August

The Minister of Mineral Resources and Energy, Gwede Mantashe has announced the adjustment of fuel prices for July 2019 based on current local and international factors with effect from the 7th of August 2019.

Based on current local and international factors, the fuel prices for August 2019 will be adjusted as follows:

• Petrol (both 93 & 95 ULP and LRP): eleven cents per litre (11.00 c/l) increase;
• Diesel (0.05% sulphur): thirteen point two nine cents per litre (13.29 c/l) decrease;
• Diesel (0.005% sulphur): fourteen point two nine cents per litre (14.29 c/l) decrease;
• Illuminating Paraffin (wholesale): two cents per litre (2.00 c/l) decrease;
• SMNRP for IP: two cents per litre (2.00 c/l) decrease;
• Maximum LPGas Retail Price: thirty one cents per kilogram (31.00 c/kg) decrease. 

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According to a statement issued by the Mineral Resources and Energy Ministry, the main reasons for the fuel price adjustments during the period under review included local and international factors. 

"On the international front, during the period under review, the Rand appreciated on average against the US Dollar from 14.62 to 14.05 Rand per dollar compared to the previous one. This led to a lower contribution to the Basic Fuel Prices on petrol by twenty eight point two cents per litre (28.20 c/l), diesel and illuminating paraffin by twenty nine point four cents per litre (29.40 c/l)," read the statement. 

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. 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.

According to the Energy Ministry, the main reason for the oil price increases were the rising tensions in the Middle East after Iran captured a British oil tanker and the sanctions that Washington imposed on Chinese State-Owned energy company, Zhuhai Zhenrong Co Ltd, for allegedly violation of the restrictions that were imposed on Iran’s oil sector.

"The Slate Levy will be reduced by four point three eight cents per litre (4.38.c/l) to zero cents per litre (0.00 c/l) in line with the Self-Adjusting Slate Levy Mechanism Rules. Effective from 7 August 2019, the Slate Levy on Petrol and Diesel will be 0.00 c/l cents per litre," said the Ministry. 

"Furthermore, the Minister of Minerals Resources and Energy, with the concurrence of the Minister of Finance, approved an increase from zero point zero one (0.01 c/l) to zero point one cents per litre (0.10 c/l) in the Tracer Dye Levy to be implemented in the diesel price structures with effect from the 7th of August 2019."