By Lehlohonolo Lehana.
The Department of Mineral Resources and Energy (DRME) has published the official fuel price adjustments for July 2023.
Petrol prices will decrease by 17 to 24 cents per litre, while diesel will go up by 12 to 18 cents per litre.
Illuminating paraffin is set to go down by 4 and 5 cents per litre, and LP Gas will decrease by R2.96 per kilogram.
The changes will come into effect from Wednesday, 5 July 2023.
Department of Energy spokesperson Robert Maake says the main reasons for the decrease are the changes in the international crude oil prices and the rand-dollar exchange.
“The rand appreciated against the US dollar. Oil prices decreased slightly, propane and butane prices decreased, which led to lower prices of LP Gas. There is no slate levy applicable to petrol and diesel.”
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 02 June 2023 to 29 June 2023 was 18.6825 compared to 18.9854 during the previous period.
This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 19.77 c/l, 18.70 c/l and 18.91 c/l, respectively.
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.
In line with the provisions of the Self-Adjusting Slate Levy Mechanism, the Slate levy on petrol and diesel will remain at 0.00 c/l with effect from 05 July 2023.