Petrol and diesel prices rise sharply as Middle East tensions impact global oil
This marks the first upward adjustment in four months, potentially a sign of a shifting trend for motorists and businesses.
Commenting on the development, Lebo Ramolahloane, national vice chairperson of the South African Petroleum Retailers Association (SAPRA) – an association of the Retail Motor Industry Organisation (RMI) – said the adjustment is largely due to average global oil prices and exchange rate movements during June.
'Global tensions between the warring parties in the Middle East have contributed to short-term volatility in oil markets, which in turn has impacted the monthly average of Brent crude and the rand/dollar exchange rate.
'This was reflected in the resultant under-recoveries that built up throughout June, increasing prices at our fuel pumps.'
He explained the price adjustments come despite a significant easing in Brent crude prices in the latter half of June, with the monthly average still resulting in under-recoveries.
'The rand also showed some resilience but was not strong enough to counter the cumulative impact of earlier market volatility.
'The spike in diesel prices is especially concerning, as it affects both logistics and agriculture, key pillars of our economy.
'For petroleum retailers, the volatility adds further complexity to already tight margins.'
Ramolahloane added that while the current increase is disappointing, there may be some light on the horizon.
'If the ceasefire between Iran and Israel holds and tensions in the Middle East continue to ease, coupled with the recent weakening of the dollar and a further drop in international oil prices, there is a possibility that motorists could see a welcome fuel price decrease again in the coming month.'
Fuel price adjustments from July 2:
Petrol (Gauteng and Coastal)
• 93 ULP & LRP: 55.00 c/litre increase
• 95 ULP & LRP: 52.00 c/litre increase
Diesel (Gauteng and Coastal)
• 0.05% Sulphur: 82.00 c/litre increase
• 0.005% Sulphur: 84.00 c/litre increase
Illuminating paraffin
• Wholesale: 67.00 c/litre increase
• SMNRP: 89.00 c/litre increase
LPG
• Retail: 57.00 c/kg decrease
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Petrol and diesel prices rise sharply as Middle East tensions impact global oil
Concerns over an increase in the fuel price have been realised with the Department of Mineral and Petroleum Resources confirming a notable fuel price increase effective today (July 2). This marks the first upward adjustment in four months, potentially a sign of a shifting trend for motorists and businesses. Commenting on the development, Lebo Ramolahloane, national vice chairperson of the South African Petroleum Retailers Association (SAPRA) – an association of the Retail Motor Industry Organisation (RMI) – said the adjustment is largely due to average global oil prices and exchange rate movements during June. 'Global tensions between the warring parties in the Middle East have contributed to short-term volatility in oil markets, which in turn has impacted the monthly average of Brent crude and the rand/dollar exchange rate. 'This was reflected in the resultant under-recoveries that built up throughout June, increasing prices at our fuel pumps.' He explained the price adjustments come despite a significant easing in Brent crude prices in the latter half of June, with the monthly average still resulting in under-recoveries. 'The rand also showed some resilience but was not strong enough to counter the cumulative impact of earlier market volatility. 'The spike in diesel prices is especially concerning, as it affects both logistics and agriculture, key pillars of our economy. 'For petroleum retailers, the volatility adds further complexity to already tight margins.' Ramolahloane added that while the current increase is disappointing, there may be some light on the horizon. 'If the ceasefire between Iran and Israel holds and tensions in the Middle East continue to ease, coupled with the recent weakening of the dollar and a further drop in international oil prices, there is a possibility that motorists could see a welcome fuel price decrease again in the coming month.' Fuel price adjustments from July 2: Petrol (Gauteng and Coastal) • 93 ULP & LRP: 55.00 c/litre increase • 95 ULP & LRP: 52.00 c/litre increase Diesel (Gauteng and Coastal) • 0.05% Sulphur: 82.00 c/litre increase • 0.005% Sulphur: 84.00 c/litre increase Illuminating paraffin • Wholesale: 67.00 c/litre increase • SMNRP: 89.00 c/litre increase LPG • Retail: 57.00 c/kg decrease At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
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