Newcastillians, prepare for higher fuel prices. This comes as the Department of Mineral Resources and Energy (DMRE) announced a forthcoming increase in the price of all grades of petrol and diesel starting Wednesday, 2 August 2023.
The department stated that the adjustments to the prices will take the following form:
* Petrol (both 93 and 95 Octane) will experience a 37c increase.
* Diesel (0.05% sulphur) will see a 72c increase, and diesel (0.005% sulphur) will face a 71c increase.
* Wholesale illuminating paraffin will go up by 71c.
* The Single Maximum National Retail Price for illuminating paraffin will rise by 95c.
* The Maximum Retail Price of LPGas will decrease by R1.61.
Attributing the price adjustments to global trends, the department cited that the average Brent Crude oil price surged from $75.10 US Dollars [USD] to $79.75 USD during the review period.
Consequently, the average international product prices of petrol, diesel, and illuminating paraffin followed this upward trajectory of crude oil prices.
The DMRE explained that these market trends resulted in higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 63.59 c/l, 99.09 c/l, and 98.71 c/l, respectively. In contrast, LP Gas prices decreased due to the decline in Propane and Butane prices.
In addition, the department highlighted that the Rand had an average appreciation against the US Dollar, going from R18.68 to R18.26 per USD during the review period. Consequently, this 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.
Moreover, the DMRE pointed out that the cumulative slate balance on petrol and diesel as of June 2023 had a positive balance of R2.69 million.
As a result, there will be no slate levy applicable in the petrol and diesel price structure for August 2023.
As the fuel price hike looms, what are your thoughts, let us know in the comment section below.
