The Minister of Mineral Resources and Energy, Mr. Gwede Mantashe, has announced fuel price adjustments that will take effect on July 5, 2023, in South Africa. The adjustments consider both local and international factors, alongside the nation’s fuel prices, which are determined monthly.
South Africa relies on crude oil and finished products imported at international prices, including additional costs such as shipping expenses. This makes the nation particularly vulnerable to international influences on fuel pricing.
The fuel price adjustments for July 5, 2023, are based on the following factors:
During the review period, the Brent Crude oil price experienced a slight decrease from $75.90 to $75.10 per barrel. This decrease was attributed to recession fears and anticipated global economic slowdowns. Additionally, The US Federal Reserve maintained its interest rates but warned of future increases, and the European Central Bank and The Bank of England raised their interest rates due to ongoing recession concerns. The meeting of OPEC and Non-OPEC members also decided not to increase oil production cuts, affecting crude oil prices.
The average international product prices of petrol, diesel, and illuminating paraffin increased, while the price of LPG decreased. The factors for these adjustments include the ongoing driving season in the Northern Hemisphere, which raised petrol prices, tighter supplies that led to middle distillate prices increasing at a higher rate, and LPG prices decreasing due to declines in propane and butane prices.
The South African Rand appreciated against the US Dollar on average during the review period, resulting in lower contributions to the Basic Fuel Prices (BFP) of petrol, diesel, and illuminating paraffin. The stronger Rand positively affected petrol and illuminating paraffin prices.
The cumulative slate balance for petrol and diesel amounted to a positive balance of R2.7 million by the end of May 2023. As a result, the Self-Adjusting Slate Levy Mechanism does not require a Slate Levy for the price structures of petrol and diesel in July 2023.
The 95 octane (unleaded) grade is the price-marker grade, and the BFP-differential between 95 and 93 octanes is adjusted quarterly on the first Wednesday. The BFP Octane differential changed during the previous quarter, affecting the retail prices of 95 and 93 petrol octanes in each fuel-pricing zone starting July 5, 2023.
Based on these local and international factors, the following fuel price adjustments will take effect on July 5, 2023:
The fuel prices schedule for the different zones will be published on Tuesday, July 4, 2023.
Cape Town's toy libraries are changing how young children learn by creating fun and exciting…
Ombuds Day is here, shining a light on the City Ombudsman, a key figure in…
Wastewater package plants are small, smart facilities that help cities manage dirty water in a…
South Africa is fighting against illegal mining with a strong team of police, soldiers, and…
Cape Town is getting ready for exciting celebrations like Diwali and Guy Fawkes Night, but…
In her first 100 days as South Africa's Minister of Tourism, Patricia de Lille has…