Johannesburg: Petrol consumers will breathe a sigh of relief at the pumps this month, as the Department of Mineral and Petroleum Resources (DMPR) has announced a decrease in the price of fuel for the month of August. Those who use diesel and paraffin, however, will have to dig deeper into their pockets, with prices set to increase.
According to South African Government News Agency, the fuel price adjustments for August are as follows: Petrol 93 (ULP and LRP) and Petrol 95 (ULP and LRP) will both see a 28 cent decrease. Conversely, Diesel (0.05% sulphur) and Diesel (0.005% sulphur) will face increases of 65 cents and 63 cents, respectively. Illuminating Paraffin (wholesale) will rise by 32 cents, while the Single Maximum National Retail Price for Illuminating Paraffin will increase by 43 cents. On the other hand, the Maximum Retail Price of LPGas will decrease by 69 cents, and in the Western Cape, it will decrease by 78 cents.
The DMPR explained the main reasons for the adjustments, including the recent marginal decrease in the price of Brent Crude oil, which fell from $69.36 USD to $69.06 USD during the period under review. The main contributing factor to the lower crude oil price is the decision by OPEC to increase production and the uncertainty caused by looming US trade tariffs, which could impact global economic growth and demand for crude oil.
The average international petrol prices decreased in line with the decrease in crude oil prices. However, the prices of diesel and paraffin increased due to low stocks in the US, unplanned refinery shutdowns, and closures of refineries in the EU, resulting in tight supply. This led to lower contributions to the Basic Fuel Prices (BFP) of petrol by 23.49 cents per litre and higher contributions to the BFP of diesel and illuminating paraffin by 69.94 cents per litre and 35.57 cents per litre, respectively. Additionally, the prices of propane and butane decreased during the period under review.
The Rand appreciated on average against the US Dollar, rising from R17.84 to R17.76 per US Dollar, leading to lower contributions to the Basic Fuel Prices of petrol by between 4.00 - 5.00 cents per litre on all products. The price adjustment is effective from Wednesday.