The price of petrol (both 93 & 95 ULP and LRP) will decrease by R1.32c per litre from Wednesday 3 August.
Diesel will decrease by between 88c and 91c per litre.
The Department of Mineral Resources and Engery attributes the decrease in fuel prices to the decrease in the price of Brent Crude Oil and less demand for crude oil due to recession concerns and a resurgence of Covid-19 in China.
Additional factors include the decision by OPEC and Non-OPEC members to increase oil production.
Illuminating Paraffin (wholesale) decreases by R1.44c per litre and LPG increases by 57c per kg.
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, e.g. shipping costs.
LPG prices have increased due higher freight rate during the period under review.
The Rand depreciated, on average, against the US Dollar (from 15.76 to 16.87) Rand per USD during the period under review when compared to the previous one.
This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 95.66 c/l, 103.68 and 105.12 c/l respectively.
The temporary reduction in the general fuel levy of 75 cents per litre announced by the Minister of Finance in consultation with the Minister of Mineral Resources and Energy which was implemented in the price structures of petrol and diesel will come to an end on the 2nd of August 2022. As a result, the fuel levy will amount to 394 c/l for petrol and 380 c/l for diesel.
As at the end of June 2022, the cumulative slate amounted to a negative balance for petrol and diesel of R16,7 billion. In line with the provisions of the SelfAdjusting Slate Levy Mechanism, there is no change to the Slate Levy to be implemented into the price structures of petrol and diesel with effect from the 3rd of August 2022. The slate levy applicable remains 52,62 c/l.
The Department will reimburse the under recovery to industry in a phased manner until the negative slate balance is cleared.
The fuel prices schedule for the different zones will be published on Tuesday, the 2nd of August 2022.