Mineral and petroleum resources minister Gwede Mantashe has announced a mixed bag for motorists in August, with big increases to diesel prices and decreased petrol prices.
From Wednesday, fuel prices will be adjusted as follows:
- Petrol 93 and 95: 28c/l decrease
- Diesel 0.05 sulphur: 65c/l increase
- Diesel 0.005 sulphur: 63c/l increase and
- Illuminating paraffin wholesale: 32c/l increase.
The main reasons for the fuel price adjustments are due to the average Brent Crude oil price decreasing slightly from 69.36 to 69.06 during the period under review. The main contributing factor to the lower crude oil price is the decision by Opec 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, which have resulted in tight supply.
The rand appreciated against the US dollar from 17.84 to 17.76 compared to the previous period.