Official fuel price changes for July – Petrol down, diesel up

South African motorists will see a small decrease in the cost of petrol this Wednesday, 5 July, though the same cannot be said for diesel.

The Department of Mineral Resources and Energy (DMRE) has published the official fuel price adjustments for this month, showing that petrol will be dropping by anywhere from 17 to 24 cents per litre, depending on whether you live inland or near the coast.

Diesel prices, on the other hand, will experience an increase of up to 18 cents per litre, though thankfully, this still keeps the cost under the R20-per-litre threshold that the fuel type reached last month after more than a year of high costs.

July price changes

According to the DMRE, these are the official fuel price changes that will come into effect from Wednesday, 5 July 2023.

• Petrol 93 – Decrease of 24 cents a litre
• Petrol 95 – Decrease of 17 cents a litre
• Diesel 0.05% – Increase of 18 cents a litre
• Diesel 0.005% – Increase of 12 cents a litre

The average international product price for petrol, diesel, and illuminating paraffin increased during the period under review which had a negative effect on this month’s price adjustments.

However, the rand gained ground against the U.S. Dollar in the same period, going from R18.98 to the dollar at the start of June to R18.68 by the end of the month resulting in a lower contribution to the Basic Fuel Price (BFP) for petrol and diesel of 19 and 18 cents per litre, respectively, according to BusinessTech.

The Working Rules on the BFP differential of petrol 93 and 95 have also been adjusted, which is evident from the varying price changes for the two fuel grades.

Furthermore, the Slate Levy on petrol and diesel will remain at 0 cents per litre as of 5 July 2023, in line with the provisions of the Self-Adjusting Slate Levy Mechanism.

The rise in diesel prices specifically is then attributed to increasing demand for the fuel as commercial activity continues to improve in major economic hubs like China, while supply from major producers like Russia and the United States remains limited.

The table below shows how July’s fuel price adjustments will reflect at the pump: