Logistics businesses and supply chains will feel the impact of double-digit increases in the price of diesel on Wednesday, August 6.
According to the Department of Mineral and Petroleum Resources DMPR the latest fuel price adjustments announced on Tuesday will see the price of diesel 0.05 sulphur and diesel 0.005 sulphur increasing by 65 cents/litre c/l and 63c/l, respectively, while the price of petrol 93 ULP LRP and 95 ULP LRP both drop by 28c/l.
The price of illuminating paraffin wholesale will rise by 32c/l and the single maximum national retail price for illuminating paraffin is set to increase by 43c/l. The maximum retail price of LPGas will drop by 69c/kg nationally and by 78c/kg in the Western Cape.
The DMPR said the recent marginal decrease in the price of Brent Crude from 69.36 to 69.06 over the period under review had influenced the price adjustments.
The main contributing factor to the lower crude oil price is the decision by the Organisation of 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 department said.
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.
This led to lower contributions to the basic fuel prices BFP of petrol by 23.49c/l and higher contributions to the BFP of diesel and illuminating paraffin by 69.94c/l and 35.57c/l respectively. The prices of propane and butane decreased during the period under review.
Furthermore, the rand appreciated on average against the US dollar, rising from R17.84 to R17.76 per dollar, leading to lower contributions to the BFP of petrol by between four and five cents per litre on all products, the department said.