Petrol price rises, diesel goes down as government cuts fuel levy

There is yet another blow at the pumps as government fuel levy relief is reduced while petrol prices continue to climb.

The general fuel levy relief has been cut by R1.50 a litre for petrol and R1.96 for diesel after the relief measure was introduced in April to cushion households against soaring prices linked to the Middle East crisis.

According to the Department of Mineral and Petroleum Resources, petrol 93 and 95 will both increase by R1.43 per litre. Diesel, however, will see decreases, with 0.05% sulphur dropping by 324.96 cents per litre and 0.005% sulphur down by 261.96 cents per litre. Illuminating paraffin price will fall by R5.96 cents per litre, while the single maximum national retail price for paraffin drops by R7.95 cents per litre.

The maximum retail price of LPGas will decrease by 17 cents per kilogram nationally and by 20 cents per kilogram in the Western Cape.

International and local factors

The minister of mineral and petroleum resources said the adjustments are influenced 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,” said Mantashe.

The department highlighted three main drivers behind the changes, including crude oil prices increasing from $101 to $104.59 per barrel, fuelled by tensions between the US and Iran and the closure of the Strait of Hormuz.

Secondly, international petroleum product prices decreased, particularly for middle distillates such as diesel and paraffin, due to lower seasonal demand in the northern hemisphere. This contributed to reductions in the basic fuel price of diesel and paraffin.

On the other hand, the rand strengthened slightly against the US dollar, moving from R16.65 to R16.52, which helped ease costs marginally.

• This story has been updated

Visit SW YouTube Channel for our video content