Cape Town – The Minister of Mineral Resources and Energy, Gwede Mantashe, has announced the upcoming adjustment of fuel prices, which will come into effect on 7 June 2023.
Fuel prices in the country are reviewed monthly, taking into account both international and local factors.
International factors include the importation of crude oil and finished products at prices determined at the international level, including associated costs such as shipping.
Based on the current local and international factors, the fuel prices for June 2023 will be adjusted as follows:
- Petrol (93 and 95 ULP & LRP): Decrease of 71.00 c/l.
- Diesel (0.05% sulphur): Decrease of 84.00 c/l.
- Diesel (0.005% sulphur): Decrease of 80.00 c/l.
- Illuminating Paraffin (wholesale): Decrease of 43.00 c/l.
- Single Maximum National Retail Price (SMNRP) for Illuminating Paraffin: Decrease of 58.00 c/l.
- Maximum LPGas Retail Price: Increase of 75.00 c/kg.
In a statement on Monday, the Department of Mineral Resources and Energy said the primary reasons for the adjustment of fuel prices are as follows:
- Crude oil prices: The average price of Brent Crude oil decreased from $82.20 to $75.90 per barrel during the reviewed period. Several factors contributed to this decrease, including lower economic growth indicated by the release of the Chinese Purchasing Managers Index (PMI) data. Additionally, the collapse of a US bank, uncertainty surrounding the US debt ceiling Bill, and unexpected inventory builds despite OPEC+ production cuts influenced the downward trend in crude oil prices.
- International petroleum product prices: The average international prices of petrol, diesel, and illuminating paraffin followed the decreasing trend of crude oil prices during the reviewed period. However, the price of LPG increased due to higher Butane prices. Consequently, this led to lower contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin.
- Rand/US Dollar exchange rate: The South African Rand depreciated against the US Dollar during the reviewed period, leading to higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin.
- Implementation of the Slate Levy: As of April 2023, there is a positive balance in the cumulative slate, amounting to R1,265 million. Therefore, no slate levy will be applicable in the petrol and diesel price structure for June 2023.
- Implementation of the Carbon Levy: The additional 1.0 c/l levy in petrol and diesel, introduced in May 2023 to recoup levy payments for April, has been removed. As of the 7th of June 2023, the Fuel Levy will decrease to 395.0 c/l and 381.0 c/l in the petrol and diesel price structures, respectively.
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Compiled by Betha Madhomu
