The South African Minister of Mineral Resources and Energy, Gwede Mantashe, announces adjustment of fuel prices based on current local and international factors with effect from the 4th of August 2021.
Fuel prices in South Africa are modified monthly, based on international and local considerations. South Africa importing both crude oil and finished products at worldwide prices, including importation costs such as transportation costs, is one of the international factors.
The main causes for the fuel price adjustments, according to the South African government, are:
- Crude Oil Prices
During the period under consideration, the average Brent Crude oil price increased from 73.00 USD to 74.00 USD per barrel. According to the American Petroleum Institute, the drop in crude oil stockpiles reached roughly 54 million barrels, contributing to increased oil prices in July 2021.
- International Petroleum Product Prices
The rise in crude oil prices was followed by a rise in international refined petroleum product prices. This resulted in higher payments to the Basic Fuel Price for petrol of 48.29 cents per litre, diesel of 16.37 cents per litre and 15.53 cents per litre, and illuminating paraffin of 17.76 cents per litre.
- Rand/US Dollar Exchange Rate
When comparing the current period to the previous one, the Rand declined on average versus the US Dollar (from 13.92 to 14.54 Rand per USD). As a result, contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin increased by 43.73 cents per litre, 32.37 cents per litre, and 31.42 cents per litre, respectively.
- Implementation of the Slate Levy
According to the Self-Adjusting Slate Mechanism guidelines, a charge of 6.58 cents per litre will be incorporated into the price structures of gasoline and diesel beginning August 4, 2021.
Therefore, the fuel adjustments for August are:
Petrol (both 93 ULP and LRP): 91 cents per litre increase
Petrol (both 95 ULP and LRP): 91 cents per litre increase;
Diesel (0.05% sulphur): 55.58 cents per litre increase;
Diesel (0.005% sulphur): 54.58 cents per litre increase;
Illuminating Paraffin (wholesale): 50 cents per litre increase;
SMNRP for IP: 67 cents per litre increase;
Maximum LPGas Retail Price: 226 cents per kilogram increase;
