July fuel price will cost an extra R25 a tank, on average
Minister of Mineral and Petroleum Resources Gwede Mantashe announced that South African motorists face a fuel price increase set to take effect on Wednesday, 2 July. This adjustment reflects a combination of local and international factors influencing the cost of fuel.
While earlier reporting anticipated a decrease on the back of a stronger rand and soft oil prices, the monthly review process, which takes into account global crude oil and petroleum product prices, importation costs such as shipping and the rand/dollar exchange rate, revealed a different reality.
Your wallet is about to feel the squeeze:
Key factors behind this month's fuel price adjustment:
Crude oil prices: The average Brent Crude oil price rose from $63.95 to $69.36 per barrel during the review period. This increase was mainly due to geopolitical tensions in the Middle East, particularly between Israel and Iran, raising concerns over potential supply disruptions.
International petroleum product prices: Following crude oil trends, international prices for petrol, diesel and illuminating paraffin increased, contributing to higher basic fuel prices by 68.45 cents per litre for petrol, 100.48 cents per litre for diesel, and 83.20 cents per litre for paraffin. Propane and butane prices slightly decreased.
Rand limiting the damage: The rand strengthened against the dollar, moving from 18.11 to 17.84 rand per dollar, which helped reduce the fuel price contributions by more than 15 cents per litre for petrol and about 16 cents per litre for diesel and paraffin.
Slate levy: The slate balance was positive at R5.213-billion in May. Accordingly, the slate levy remains unchanged at zero cents.
Octane differentials: The price difference between 95 and 93 octane petrol grades is adjusted quarterly. This quarter, changes in the Basic Fuel Price differentials mean retail prices for these grades will differ by fuel-pricing zones.
Supply cost recovery for LPGas in Western Cape: A 14% increase in Supply Cost Recovery on LPGas imported through the Port of Saldanha Bay has been approved as an interim measure for 24 months. This raises the maximum retail price of LPGas in the Western Cape to R36.08/kg.
This rise in costs is already causing concern among everyday South Africans who rely on fuel for their livelihoods. Kagisho Sefako, who works in the transportation industry in the Western Cape and depends heavily on petrol, said the increase would hit his budget hard.
'We were still enjoying petrol decreases last month, and now this increase will really hit my budget for July. When petrol goes up, everything else follows,' he told Daily Maverick, worried about the impact on his daily expenses.
Echoing these concerns, Alberto de la Vega, a teacher in the Free State, expressed frustration. Already spending a significant amount on fuel, he said the increase would strain his pocket even further. DM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
31 minutes ago
- The Citizen
Proudly SA launches online store – here's how to list your business on it
There are currently 30 categories on the website, and more are expected to be added. Proudly South African has launched an online store where buyers can buy locally made products and services. The online store, supported by the Department of Trade, Industry and Competition (dtic), is an initiative to support small and medium enterprises (SMEs) in the country. The online store, Shop SA, currently lists 300 businesses and 1 000 products that customers can purchase. The store was officially launched in Sandton on Tuesday. Proudly SA CEO Eustace Mashimbye said they are still in the process of listing more businesses, and after the vetting process, they will have approximately 500 businesses. ALSO READ: Government to launch online stores: How much do you think a South African dress would cost? How to list your business To list your business on Shop SA, you need to be a Proudly SA member. Businesses that are members of the organisation have been vetted and approved by Proudly SA to use their logo, signifying that they meet certain local content, quality and ethical standards. Being a member offers various benefits, including access to events, expos, workshops, and conferences organised by Proudly SA. Another benefit that has been added is getting to list your business on the online store. Members can go to the organisation's website and register to have their business listed. Those who are not members would need to apply. However, there is a process that Proudly SA follows before giving your business a membership. Vetting of the business Mashimbye explained that before listing products and services online, they need to be vetted. First, at least 50% of the production cost must be incurred in South Africa, and there must be a 'substantial transformation' of any imported materials. Quality is of importance; therefore, 'the product or service must be of a proven high quality'. 'The company must be environmentally responsible and adhere to production processes that are environmentally friendly and acceptable. Services must demonstrate a willingness to recycle and reduce their carbon footprint,' he added. ALSO READ: How your bank can help when online purchases go wrong Categories on the online store He added that there are currently 30 categories on the website, and more are to be added as businesses sign up. Courier services will be handled through Bobgo and their partners for door-to-door delivery. This will take between three to five days. However, he stated that as time goes on, they will be looking at reducing the delivery time. Apart from door-to-door delivery, there are more than 4 000 nationwide drop-off points. They are looking to export in the future, introduce loyalty programmes, expand their list of courier services and implement other initiatives. How ordering on the online store works Ordering on Shop SA is no different from ordering on any other online store. A customer will select the product or service they want, make payment, and an order notification will be sent to the vendor via the system. The vendor will need to confirm stock levels. If the customer has purchased from a single vendor, the courier will collect the parcel and deliver it to the designated delivery address or drop it off at the pick-up point. If the customer has purchased from multiple vendors, the vendors will need to ship the items to the warehouse; therefore, the courier will collect the items as a single shipment for delivery. This will be at no extra charge to the customer. The return shipment is booked by the customer at their own expense. The item is returned to the vendor, who will then need to approve or decline the return. Potential job creation Minister of dtic, Parks Tau, speaking at the launch, said campaigns like 'Buy local to create jobs' are important in shifting consumer choices and institutional procurement behaviours. Research by Proudly SA indicates that if every household redirected just 10% of their annual spend to local goods, it could create up to 120 000 new jobs. He added that the introduction of export functionality will enable local manufacturers to capitalise on the opportunities presented by the African Continental Free Trade Area (AfCFTA), a market with a projected GDP of $3.4 trillion and access to 1.4 billion consumers. 'South Africa's ecommerce market itself is also growing, expected to reach R225 billion by 2025, with increased internet penetration and digital payment infrastructure expanding rapidly. It is critical that local producers benefit from this growth and do not get left behind.' NOW READ: Four trends for e-commerce retailers to follow
IOL News
41 minutes ago
- IOL News
US demands on exemption from South Africa's BEE requirements yet to be discussed with Ramaphosa
The Freedom Front Plus delegation in Washington last week. Image: Facebook/FFPlus FF Plus leader Corné Mulder says he has yet to brief President Cyril Ramaphosa on claims that the Trump administration has demanded that US entities be exempted from all Black Economic Empowerment (BEE) requirements as a precondition for normalising bilateral relations with South Africa. There are more than 600 US companies based in South Africa. Mulder made the claims as a FF Plus delegation returned from the US where they met with senior White House officials. This demand is part of a broader set of conditions that include addressing farm attacks, condemning the "Kill the Boer" chant, and ensuring fair market compensation for land expropriation. According to Mulder, the White House officials expressed concern that these conditions have not been adequately addressed. In May President Cyril Ramaphosa and his delegation embarked on a working visit to the US to meet with US president Donald Trump to help reset strained relations between the two countries and secure a favorable trade deal after a fallout over the International Court of Justice (ICJ) case against Israel that had been instituted by South Africa. Mulder, who held a press briefing on Wednesday, said the delegation is committed to normalising relations between South Africa and the US and described Ramaphosa's visit with Trump in May as 'premature'. "We have a clear understanding of the US Administration's expectations," Mulder said. "The delegation has undertaken to communicate these pre-conditions to both the South African government and the broader public in the interest of transparency, accountability, and the restoration of strong bilateral ties,' said Mulder. Mulder added that they had not gone to the US to complain. He said that discussions on claimed genocide did not arise and they did not meet with the 50 white Afrikaners that were granted refugee status by the Trump administration. Southern African Agri Initiative chairman Theo de Jager, and National Employers' Association CEO Gerhard Papenfus were part of the delegation. According to business group Sakeliga's CEO Piet le Roux, this development marks a substantial escalation in international pressure against South Africa's 'race-restrictive economic policies'. "The international backlash against BEE and other race-restrictive policies of the South African government is set to escalate further in the coming months and years," Le Roux said. Le Roux noted that the US demand elevates race-restrictive legislation beyond domestic affairs to the level of international economic and diplomatic relations This could lead to a ratcheting up of US-led bilateral or multilateral pressure opposing restrictive legislation in South Africa. Speaking on BEE, De Jager said there was only one way to avoid economic migrants and that was by improving their livelihoods. "The principle here is that there must be equal citizenship…there must be respective property rights and there must be an environment where we can also do business. 'They (Trump administration) said to us that they had heard us on the BEE matter, that it is a non-trade tariff barrier and they said that they would not restore any trade relationship if these preconditions are not adhered to. 'The biggest war of our generation is poverty and hunger and the only way we can deal with that is to create wealth…So we are gradually losing investment because of the likes of BEE and the threat to expropriate your property without compensation. You cannot invest in a country where you are not safe. 'We need an environment that will safeguard investment whether you are black or white. As Afrikaners we don't have access to production financing anymore. We need that kind of access,' said de Jager. Department of International Relations and Cooperation (DIRCO) spokesperson Chrispin Phiri told IOL that the group was pursuing its "own agenda". "Our experience is that State actors do not use non-state actors as intermediaries; therefore, Freedom Front Plus (VF Plus) visit and subsequent pronouncements will be viewed as nothing more than their ambitions," he said. Presidency spokesperson Vincent Magwenya did not respond to questions on how the South African government would react to the US demands. However, Ramaphosa has previously indicated that he would not back down from implementing BEE policies. "BEE is not holding back the economy, but rather the concentrated nature of our economy is," Ramaphosa said. He defended using racial designations as a means to address economic disparities, although he acknowledged that this might not be necessary in the future.
IOL News
2 hours ago
- IOL News
Sports department rubbishes Gayton McKenzie's alleged bias against Cape Town's F1 bid team
They said the BSC was 'vague' about stipulations around the deposit. In order to bid to host the F1, each group had to submit an application motivating their location as well as making a deposit of R10 million. CTGPSA wanted to pay the deposit with a promissory note, which is a legal document outlining their intended loan repayment structure. CTGPSA also raised concerns about the BSC's handling of the R10 million deposit, which was part of the bid application process. Cape Town has proposed a street-style circuit, similar to that of Monaco. CTGPSA, this week, suggested that the Minister of Sport Gayton McKenzie acted in the best interests of Kyalami's F1 bid and labelled the Bid Steering Committee (BSC) as a biased group, who also acted in Kyalami's interests. The Department of Sports, Arts and Culture ( DSAC) has called the allegations made by the Cape Town Grand Prix SA (CTGPSA) team as 'utterly baseless'. 'On 7 December 2024, Gayton McKenzie stated 'the race is going to happen at Kyalami' and this was before announcing the BSC, looking at other bids or doing economic assessments. The fact that minister McKenzie appointed the BSC cannot just be overlooked as trivial, especially given how things played out after this. 'Then, when the bid document was put out, we were given fewer than 10 days to submit our entire proposal, including a R10 million deposit – a bid to host a major global sporting event. Only after we pushed for an extension to encourage a fair process did an extension emerge. 'We respect the BSC and minister McKenzie and we want to work with them. But as a proudly South African bid, we hold fairness, accountability and a legacy for our country in high regard. We believe our plan offers the best shot at a successful, long-term F1 future on the African continent,' CTGPSA said. The group questioned how the BSC used the R10 million deposit, what triggered a refund, the timeframe of the refund, whether or not the funds would be held in an interest bearing account and if there was an audit trail. 'We feel alternative submissions received to be more comprehensive, viable and suited for the purpose,' was the response CTGPSA said it got from the BSC, which raised even more concerns. 'A payment of a deposit of R10 million to support an open bid submission should NOT be the determining factor as to whether a bid is considered or not, particularly when it does not make any changes to the economics of a bid." Stacey-Lee Khojane, spokesperson for the DSAC refuted CTGPSA's claims and said that all bids were judged fairly. 'The bid process was open to anyone who wished to submit a bid. All of the bids were judged fairly and objectively by the BSC. The minister was not a part of that process. Their allegations are utterly and totally baseless,' Khojane added. The BSC has acknowledged CTGPSA's remarks, but have not yet respond to Independent Media's enquiries about the allegations.
