Petrol decreases while diesel goes up from Wednesday, 5 July 2023

The Department of Mineral Resources and Energy (DMRE) has announced that the price of both 93 and 95 octane petrol will decrease from Wednesday, 5 July 2023.

93 octane petrol will decrease by 24 cents per litre, while 95 octane will go down by 17 cents/litre.

The price of diesel (0.05% sulphur) increases by 18c per litre while diesel with 0.005% sulphur increases by 12 cents per litre.

Meanwhile, illuminating paraffin will cost 4 cents per litre less, while the price of LP gas decreases by R2.96 per kilogramme.

Reason for petrol decrease

DMRE spokesperson Robert Maake said there were several international and local factors that contributed to the adjustments in the petrol and diesel prices.

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Brent Crude price

Maake said the main reasons for the fuel price adjustments was the average Brent Crude oil price decreased from $75.90 to $75.10 during the period under review.

Recession fears and an anticipated global economic slowdown also played a role.

OPEC and non-OPEC members also decided not to increase oil production cuts during their last meeting.

Unexpected increases in the oil inventories, production cuts announced in April, affected demand. The collapse of another US bank – First Republic Bank – and concerns about the US debt ceiling also played a role in the oil price.

International petroleum prices

The department said the average international prices of petrol, diesel and illuminating paraffin increased during the period under review. However, the price of LPG decreased.

“The movement in product prices has led to higher contributions to the Basic Fuel Price (BFP) of petrol 95ULP by 2.66 c/l, diesel 500ppm and 50ppm by 37.08 c/l and 31.33 c/l respectively, while the contribution to illuminating paraffin was 15.76 c/l.”

Rand/dollar exchange rate

The stronger rand affected petrol and illuminating paraffin prices positively, the department said, resulting in an overall decrease in those prices.

“The rand appreciated, on average, against the US dollar (from 18.99 to 18.64) during the period under review when compared to the previous one.”

Slate levy

It also said there is no additional to the slate levy, which would have increased the price for petrol and diesel.

“As at the end of May 2023, the cumulative slate amounted to a positive balance for petrol and diesel of R2.7 million. In line with the provisions of the self-adjusting slate levy mechanism, there is no applicable slate levy to the price structures of petrol and diesel for July 2023.”

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