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Friday / 14 June 2024
HomeNewsOfficial petrol price for August – Increases across the board

Official petrol price for August – Increases across the board

The Department of Mineral Resources and Energy (DMRE) has gazetted the official fuel price adjustments that will take effect in South Africa tomorrow, 2 August.

All grades of fuel are experiencing an increase with a maximum of 37 cents per litre on the cards for petrol and up to 72 cents per litre for diesel, as a result, diesel at inland rates will peak past the R20/litre barrier again for the first time since May.

The hikes are due to a rise in international petroleum product prices during the month of July, which was slightly offset by an appreciating rand/US dollar exchange rate that led to a lower contribution to the Basic Fuel Prices of petrol and diesel by 27.46c/l and 26.64c/l, respectively.

According to the DMRE, fuel prices in South Africa this Wednesday will be adjusted as follows:

  • Petrol 93 – Increase of 37 cents a litre
  • Petrol 95 – Increase of 37 cents a litre
  • Diesel 0.05% – Increase of 72 cents a litre
  • Diesel 0.005% – Increase of 71 cents a litre

In line with the provisions of the Self-Adjusting Slate Levy Mechanism, the Slate levy on petrol and diesel will remain at 0.00c/l during August, BusinessTech reports.

More hikes expected in 2023

In May, Rand Merchant Bank (RMB) said fuel prices in South Africa are expected to see small consecutive increases for the second half of 2023, starting in July.

This, due to an anticipated rise in oil prices off the back of production cuts initiated by the oil-producing (OPEC+) nations.

This week, Reuters reported that oil inventories around the world are now starting to drop following a considerable output cut of 1 million barrels per day from Saudi Arabia, the global leader in oil production, a few weeks earlier, thus setting the stage for higher prices to come.

By the end of August, analysts from Energy Aspects believe that the bulk of oil reserves that were built up during the first half of 2023 will be depleted, with “supply tightness” being accelerated by the Saudi cuts and the Northern Hemisphere’s summer season.

Oil prices are therefore predicted to rise to around the $85-90/barrel bracket by the end of the third quarter of 2023 which, in turn, drives up the Basic Fuel Price, before stabilising again in the fourth quarter.

Locally, “something of a rand recovery” is expected for the remainder of the year, said RMB, which will counteract the oil price increases to some extent and potentially keep fuel costs below the R26/litre mark we saw back in 2022.

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

Fuel type Inland Coastal
Petrol 93 R22.43 R21.71
Petrol 95 R22.83 R22.11
Diesel 0.05% R20.21 R19.48
Diesel 0.005% R20.52 R19.81

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