South African Minister of Energy and Mineral Resources, Gwede Mantashe, has announced adjustments in fuel prices for July.
As of Wednesday (6 July 2022), the price of 93 unleaded petrol will increase by R2.37 ($0.15) and the price of 95 unleaded petrol will go up by R2.57 ($0.16), which will see the petrol price over R25($1.53) for the first time ever. According to the statement released by Mantashe, adjustments in the fuel price are influenced by various international and local factors.
Among the factors that influenced the fuel price increase in SA is the increase in Brent crude oil price, which went from $115 to $115.77.
There has been an increasing demand for crude oil as China lifted Covid-19 restrictions while OPEC has reduced demand forecast due to recession fears which could lead to an economic slowdown and less demand for crude oil, Independent Media reported.
The Energy and Mineral Resources Minister added that the general fuel levy of 75 cents per litre will be implemented during this period until 3 August 2022.
“Due to the ongoing Russia – Ukraine conflict which has affected fuel prices globally, 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 will be implemented in the price structures of petrol and diesel during this period until the 3rd of August 2022,” Mantashe said in a statement.
The Minister added that the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone.
This is the fourth consecutive month since fuel prices started increasing in April 2022 as a result of the Russia-Ukraine war.
By Zintle Nkohla
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