Petrol consumers will breathe a sigh of relief at the pumps this month, as the Department of Mineral and Petroleum Resources (DMPR) has announced a decrease in the price of fuel for the month of August.
Those who use diesel and paraffin, however, will have to dig deeper into their pockets, with prices set to increase.
The fuel price adjustments for August are as follows:
- Petrol 93 (ULP & LRP): 28 cent decrease.
- Petrol 95 (ULP &LRP): 28 cent decrease.
- Diesel (0.05% sulphur): 65 cent increase.
- Diesel (0.005% sulphur): 63 cent increase.
- Illuminating Paraffin (wholesale): 32 cent increase.
- Single Maximum National Retail Price for Illuminating Paraffin: 43 cent increase.
- Maximum Retail Price of LPGas: 69 cent decrease and 78 cent decrease in the Western Cape.
The DMPR explained the main reasons for the adjustments, including the recent marginal decrease – from $69.36 US Dollars (USD) to $69.06 USD – in the price of Brent Crude oil over the period under review.
“The main contributing factor to the lower crude oil price is the decision by OPEC [Organisation of the Petroleum Exporting Countries] to increase production and the uncertainty caused by looming US trade tariffs, including secondary tariffs, which could affect global economic growth and demand for crude oil.
“The average international petrol prices decreased in line with the decrease in crude oil prices. The prices of diesel and paraffin increased due to low stocks in the US, unplanned refinery shutdowns and closures of refineries in the EU [European Union], which have resulted in tight supply.
“This led to lower contributions to the Basic Fuel Prices [BFP] of petrol by 23.49 cents per litre and higher contributions to the BFP of diesel and illuminating paraffin by 69.94 cents a litre and 35.57 cents a litre respectively. The prices of propane and butane decreased during the period under review,” the department said in a statement on Tuesday.
Furthermore, the Rand appreciated on average against the US Dollar, rising from R17.84 to R17.76 per US Dollar – leading to “lower contributions to the Basic Fuel Prices of petrol by between 4.00 – 5.00 cents per litre on all products”.
The price adjustment is effective from Wednesday.
Originally posted on SAnews.gov.za
