Increase in the official petrol price for June
The Department of Energy published the official petrol price for June 2019 and it looks like motorists will have to deal with another hike.
The Minister of Minerals and Energy Resources, Gwede Mantashe, announced the adjustment of fuel prices for June 2019 based on current local and international factors.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs such as shipping.
According to the Department, the price of petrol and diesel has increased by 9 cents per litre and 33 cents per litre for diesel while illuminating paraffin has increased by 8 cents per litre.
The main reasons for the fuel price adjustments during the period under review include local and international factors such as:
Carbon Tax Levy
The newly implemented Carbon Tax Levy was effective from 1 June 2019, and in line with that announcement, the Fuel Levy applicable to petrol and diesel was 9c/l and 10c/l respectively.
Self-Adjusting Slate Levy Mechanism Rules
The Slate Levy on petrol and diesel is 13.16 cents per litre.
Rand/Dollar exchange rate
During the period under review, the Rand depreciated against the US Dollar from R14.14 to R14.41. This led to a higher contribution to the Basic Fuel Price on Petrol by 14.32 cents per litre, Diesel by 15.01 cents per litre, and Illuminating Paraffin by 14.92 cents per litre.
Brent crude oil price
The Brent crude oil price experienced a slight upward increase from 71.00 US Dollars (USD) per barrel to 71.60 USD per barrel. The pressure on oil prices has been caused by the recent escalating tensions between the USA and China.
Here are the price changes for June 2019:
- Petrol 95: 9 cents per litre increase;
- Petrol 93: 9 cents per litre increase;
- Diesel (wholesale): 33 cents per litre increase;
- Illuminating Paraffin: 8 cents per litre increase.
Motorists can also expect another fuel hike in July due to a weakening Rand and uncertain Brent crude oil prices.
Here are the official petrol prices for June 2019:
