Great news for motorists as the Minister of Mineral Resources and Energy, Gwede Mantashe, announced a decrease in fuel prices from Wednesday 03 August 2022.

Consumers will now pay R1.32 a litre less for both grades of petrol while diesel will decrease by between R0.88 and R0.91 a litre. Illuminating paraffin will decrease by R1.44 a litre.

Other fuel price adjustments for August 2022 are as follows:

  • SMNRP for IP: one hundred and ninety-two cents per litre (R1.92 c/l) decrease;
  • Maximum LPGas Retail Price: fifty-seven cents per kilogram (R0.57 c/kg) increase.
In a statement, the Department of Mineral Resources and Energy (DMRE) explained that South Africa’s fuel prices are adjusted monthly – 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, such as shipping costs.

The main reasons for the fuel price adjustments are due to:

Crude oil prices

The average Brent Crude oil price decreased from $115.77 per barrel to $105.00 per barrel during the period under review. The main contributing factors are:

International petroleum product prices

  The average international product prices of petrol, diesel, Illuminating Paraffin and LPG have decreased during the period under review. LPG prices have increased due to higher freight rates during the period under review. The movement in product prices has led to lower contributions to the Basic Fuel Price of petrol ULP 95 by 303.16 c/l, ULP 93 by 297.42 c/l, diesel 500ppm and 50ppm by 267.30 c/l and 271.15 c/l respectively, while the contribution to illuminating paraffin was 249.77 cents per litre.

Rand/US Dollar exchange rate

The Rand depreciated, on average, against the US Dollar (from 15.76 to 16.87) Rand per USD during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 95.66 c/l, 103.68 and 105.12 c/l respectively.

Short-term relief measures to address fuel price increases

The temporary reduction in the general fuel levy of 75 cents per litre announced by the minister of finance in consultation with the Minister of Mineral Resources and Energy which was implemented in the price structures of petrol and diesel will come to an end on the 2nd of August 2022. As a result, the fuel levy will amount to 394 c/l for petrol and 380 c/l for diesel.

Implementation of the slate levy

As of the end of June 2022, the cumulative slate amounted to a negative balance for petrol and diesel of R16,7 billion. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, there is no change to the Slate Levy to be implemented into the price structures of petrol and diesel with effect from the 3rd of August 2022. The slate levy applicable remains 52,62 c/l. The Department will reimburse the under-recovery to the industry in a phased manner until the negative slate balance is cleared.

The fuel prices schedule for the different zones will be published during the week.

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