By Lehlohonolo Lehana.
The Department of Energy has published the fuel price adjustments for July 2022, showing a massive hike for both petrol and diesel.
The price adjustments for July include an additional 75 cents per litre which is being added back to the general fuel levy as the government tapers off its interventions first introduced in May.
The August price adjustment is expected to add a further 75 cents per litre, ending the interventions altogether.
The price adjustments are as follows:
– Petrol (both 93 ULP and LRP) will increase by R2.37 per litre;
– Both grades of petrol 95 will increase by R2.57 per litre;
– 0.05% sulphur diesel will increase by R2.31 per litre;
– Diesel 0.005% sulphur will increase by some R2.30 per litre;
– The price of wholesale illuminating paraffin will increase by R1.66 per litre;
The changes will be implemented on Wednesday, 6 July.
According to the department, the average international product prices for petrol, diesel and illuminating paraffin increased during the period under review.
The rand appreciated against the US dollar during the period under review, on average, when compared to the previous period. The average rand/US dollar exchange rate for the period 27 May to 30 June 2022 was R15.76 compared to R15.95 during the previous period.
This led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 19.66 c/l, 20.73 c/l and 20.71 c/l, respectively.
The department reiterated that the temporary fuel price relief will be withdrawn from 3 August 2022.
With effect from 6 July 2022, the fuel levy in the price structure of petrol and diesel will therefore amount to 319 c/l and 305 c/l respectively in the price structure of both petrol and diesel.
While both grades of petrol (93 and 95) are typically aligned, in terms of the Working Rules to administer the BFP, the differentials between 95 and 93 petrol grades are adjusted at the beginning of each quarter.
The BFP differentials between 95 and 93 petrol grades have changed and therefore the different price adjustments between the two grades.
Meanwhile the Democratic Alliance (DA) said that it believes that the fuel increase will result in a more severe financial and humanitarian crisis in the country.
DA MP Kevin Mileham is expected to brief the media on Monday on the party’s fuel price deregulation bill submission to Parliament.
It said that the proposal will bring relief to cash-strapped South Africans and get government off the hook as far as the fuel price in concerned.
This bill seeks to amend the Petroleum Products Act which gives the minister the power to prescribe the price of petroleum products. The primary objective is to deregulate the fuel sector so as to increase competition in fuel price, setting both at the wholesale and retail level. It is envisaged that this will result in lower fuel prices for consumers as retailers compete to win customers based on price levels,” Mileham said.