Petrol down, diesel up for August
Motorists can expect either relief or disappointment at the pumps this month with petrol coming down and diesel increasing.
THE Department of Mineral and Petroleum Resources have announced the fuel price changes for August, and it provides a mixed bag for motorists. On August 5, petrol prices will decrease, while diesel will increase.
Also read: Rising fuel cost: How the basic fuel price is calculated
According to the department’s figures both petrol grades, 93 and 95, are set to drop by 52 cents a litre. On the other hand, diesel users will see a climb. For diesel with 0.05% sulphur, the increase was a substantial 138.44 cents per litre, while diesel with 0.005% sulphur would go up by 123.44 cents per litre. Illuminating paraffin also sees a rise with an increase of R1.52 per litre.
Leading cause:
The department explained that the drop in petrol prices was largely due to a decrease in the average Brent crude oil price, which fell from US$86.53 to US$82.37 per barrel during the period. While some regional tensions had briefly pushed crude oil prices closer to US$100 a barrel, a ceasefire agreement between the United States and Iran, coupled with a global slowdown in demand, had tempered that surge. International petrol prices had also followed suit, contributing to the local price reduction.
However, for diesel and illuminating paraffin, their prices were pushed higher by supply issues stemming from the conflict between Russia and Ukraine.
Adding another layer to the equation was the rand’s performance against the US dollar. It had weakened slightly, averaging R16.46 to the dollar compared to R16.34 in the preceding period. This meant it cost more to buy fuel internationally, creating upward pressure on local prices.
The Self-Adjusting Slate Levy also played a part. It was reduced from 113.94 cents per litre to 61.38 cents per litre, a decrease of 52.56 cents. This adjustment came after the slate balance ended June with a cumulative deficit of R7.418b.
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