Latest news with #DepartmentofMineralResourcesandEnergy
The Citizen
01-07-2025
- Business
- The Citizen
Motorists warned to brace for hefty petrol price hike from midnight
Geopolitical tensions between Israel and Iran are the key driver. South African motorists have been dealt a blow and will have to fork out more for petrol and diesel at the pumps this week. Petrol and diesel prices are expected to increase from midnight on Tuesday. Petrol and diesel prices The Department of Mineral Resources and Energy (DMRE) announced that the price of 93-octane petrol will increase by 55 cents per litre, while 95-octane petrol will increase by 52 cents per litre. The price of diesel with 0.05% sulphur increases by 82 cents per litre, and 0.005% sulphur goes up by 84 cents per litre. Meanwhile, illuminating paraffin will cost 65 cents more per litre, while the price of LP gas decreases by 57 cents per kg country-wide, except in the Western Cape, where it'll increase by R1.90 per kilogram ALSO READ: F1 in SA will be 'catalyst' for uplifting motorsport, McKenzie says How much will fuel cost you? When the fuel price adjustment kicks in, a litre of 93 unleaded petrol will cost R21.95 per litre, while 95 unleaded will be R22.03 The wholesale price of 0.05% diesel will decrease to R19.50 per litre, and 0.005% will cost R19.57 Reasons for the increase DMRE spokesperson Robert Maake stated that several factors, including international petroleum product prices and the rand-US dollar exchange rate, contributed to the decrease in petrol and diesel prices. Brent Crude Oil price Maake said the average Brent Crude Oil price increased from 63.95 US Dollars (USD) to 69.36 USD during the period under review. 'The main contributing factor is the recent geopolitical tension in the Middle East, between Israel and Iran, which raised fears of potential crude oil supply disruptions.' ALSO READ: New Subaru Forester coming to South Africa Rand/US dollar exchange Maake said the Rand appreciated on average against the US Dollar (USD) (from 18.11 to 17.84 Rand per USD) during the period under review compared to the previous one. 'This led to lower contributions to the Basic Fuel Prices of petrol by more than 15.00 c/l, diesel and illuminating paraffin by over 16.00 cents per litre'. Slate levy Maake said the cumulative slate amounted to a positive balance of R5.213 billion for petrol and diesel of at the end of May 2025. 'In line with the provisions of the Self-Adjusting Slate Levy Mechanism, the slate levy remains unchanged at zero cents per litre in the price structures of petrol and diesel with effect from the 2nd of July 2025'. Supply cost recovery Maake said there is also an implementation of a supply cost recovery on the maximum refinery gate price (MRGP) for LPGas imported through the Port of Saldanha Bay in the Western Cape province. 'The Minister has approved a 14% increase in Supply Cost Recovery on the MRGP of LPGas that is imported through the Port of Saldanha Bay (Western Cape) as an interim measure, for a period of twenty-four (24) months,' Maake said ALSO READ: Cape Town F1 Grand Prix proposal aims to build on World Cup legacy
IOL News
01-07-2025
- Business
- IOL News
July fuel price hike: What motorists need to know
South African motorists may have to dig deeper into their pockets in July, as another potential fuel price hike looms. Image: File Following four consecutive months of decreases, fuel prices are set to increase again this July, following a spike in international oil prices. Month-end data from the Central Energy Fund (CEF) shows the price of petrol is likely to rise by between 50 cents (93 Unleaded) and 53 cents (95 Unleaded), while diesel looks set to go up by between 82 cents (500ppm) and 84 cents (50ppm). Following the increases, a litre of 95 Unleaded will cost around R21.09 at the coast and R21.88 inland, with 93 Unleaded costing around R21.74. The wholesale price of 50ppm diesel is likely to rise to around R18.65 at the coast and R19.41 inland. The predictions are based on unaudited data. The final, and official, fuel price adjustments will be announced by the Department of Mineral Resources and Energy this week. The increases come as a result of higher international oil prices. Brent crude fluctuated between $62.90 and $75.40 during the month of June, with prices surging following attacks on Iran's nuclear facilities by Israel and the US. However, oil retreated to around $66 in the latter part of the month following the ceasefire. Brent Crude averaged $63.95 during the preceding review period, and given that prices hovered above that level for most of June, significant under-recoveries developed on both petrol and diesel. This was mitigated to a degree by a stronger rand. Were it not for gains made by the local currency, motorists would have faced increases in the region of 68 cents for petrol and R1 for diesel. However, the fuel price situation in South Africa has been aggravated by a rise in fuel taxes, which came into effect at the beginning of June, leading to smaller-than-expected fuel price decreases that month. The general fuel levy rose by 16 cents per litre for petrol and 15 cents per litre for diesel, raising total fuel taxes in South Africa to R6.37 for petrol. This raises serious cost-of-living concerns for South Africans who are already overburdened. Continually turning to fuel levies to fill budget gaps is unsustainable, the Automobile Association said, particularly in the absence of full transparency on how these funds are allocated and used. Cape Argus
The Citizen
18-06-2025
- Business
- The Citizen
How the illicit fuel trade is robbing SA of billions per year
Investigators have found some diesel tankers where the fuel had a paraffin content of 68%. The prevalence of illicit fuels in South Africa is a growing concern for the country's financial and consumer interests. Much like illicit alcohol and cigarettes, fuel products are smuggled, underreported and illegally manufactured or altered for criminal gain. The South African Revenue Service (Sars) reported that illicit fuels cost the fiscus roughly R3.6 billion per year, while police have identified 23 hotspots in three provinces. Illicit fuel trade Gauteng, Mpumalanga and KwaZulu-Natal are the hardest hit as syndicates operate in close proximity to Mozambique's capital. 'Over the past decade, countries along the Maputo corridor have become primary targets of the illicit fuel trade, which is driven by organised criminal networks that smuggle and illegally adulterate fuel,' stated Sars. Gathered intelligence led to search and seizure operations at fuel storage facilities and depots, where fuel viscosity and composition are tested in tankers. Sars state that common tactics involve importers declaring fuel by 20 to 30% or diluting fuels with harmful additives. 'Sars has also detected a national trend, where many of the fuel-storage and distribution depots are involved in the adulteration of all fuel products, especially through illegal mixing of diesel with paraffin.' 'In some cases, adulterated diesel – analysed in these investigations – had up to 68% paraffin content,' Sars said. Negative effects of paraffin In January 2024, the Department of Mineral Resources and Energy found 70 fuel stations that were selling diesel adulterated with paraffin. Toyota South Africa Motors explained at the time that paraffin drastically deteriorates engine lubrication, as well as the cleaning of moving parts and the conditioning of seals. 'These components will fail with the repeated use of paraffin. Furthermore, the flashpoint of paraffin is lower than diesel, which could lead to engine knock, which can cause catastrophic engine failure,' said TSAM President and CEO Andrew Kirby. In the past four months, authorities have discovered just over 950 000 litres of contaminated diesel and assets worth R367 million. Authorities opened 13 criminal cases and impounded 12 transportation trucks carrying an average of 15 000 litres of falsely declared fuel upon import. Additionally, two washrooms — one of them mobile — were shut down. These washrooms are used to add chemicals to the fuel mix, which help to disguise illegal additives. Attack on society The multi-departmental operations include Sars' trade investigators, police, and the National Joint Operational and Intelligence Structure. Sars Commissioner Edward Kieswetter thanked authorities and warned criminals not to underestimate South Africa's resolve in clamping down on illicit trade. 'The criminal syndicates engaged in these brazen acts have become emboldened to act callously, with no restraint, in pursuit of their rapacious and criminal gains. 'These acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them,' the Commissioner concluded. NOW READ: JRA allocated just 1% of amount needed to fix Johannesburg's roads
The Citizen
03-06-2025
- Business
- The Citizen
Petrol and diesel prices drop from Wednesday, 4 June, but levy
This is how much it will cost you at the pumps While South African motorists will pay less for petrol and diesel at the pumps from next week, petrol costs will still be affected by the fuel levy. The slight petrol price decrease from Wednesday, 4 June 2025, will be a relief for cash-strapped motorists. Petrol and diesel prices The Department of Mineral Resources and Energy (DMRE) announced that the prices of both 93-octane and 95-octane petrol will decrease by five cents per litre. The price of both grades of diesel with (0.05% sulphur) and (0.005% sulphur) goes down by 36.9 cents per litre. Meanwhile, illuminating paraffin will cost 56 cents less per litre, while the price of LP gas decreases by 89 cents per kg. ALSO READ: Fuel levy hike to go ahead as EFF fails in court How much will fuel cost you? When the fuel price adjustment kicks in, a litre of 93 unleaded petrol will cost R21.40 per litre, while 95 unleaded will be R21.51 The wholesale price of 0.05% diesel will decrease to R18.68 per litre, and 0.005% will cost R18.73 Reasons for petrol decrease DMRE spokesperson Robert Maake said several factors, including the international petroleum product prices and the rand/US dollar exchange rate, contributed to the decrease in petrol and diesel prices. Brent Crude oil price Maake said the average Brent Crude oil price decreased from 66.40 US Dollars (USD) to 63.95 USD during the period under review. 'The main contributing factors are the continued global trade uncertainty, lower global crude oil demand outlook, as well as the OPEC+ announcement of planned production increase in June 2025 and possibly in July 2025'. Rand/US dollar exchange Maake said the Rand appreciated on average, against the US Dollar (from 18.84 to 18.11 Rand per USD) during the period under review when compared to the previous one. 'This led to lower contributions to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin by over 39.00 cents per litre'. Fuel levy The Minister of Finance, Enoch Godongwana, in his Budget Vote Speech on the 21st of May 2025, announced that the Fuel Levy will increase by 16.00 c/l on petrol and 15.00 c/l on diesel, respectively, with effect from the 4th of June 2025. 'Therefore, the Fuel Levy in the price structures of petrol and diesel will increase to R4.15 per litre and R4.02 per litre, respectively. 'The Road Accident Fund levy remains unchanged at R2.18 per litre on the price structures of petrol and diesel,' Maake said. Slate levy Maake said the cumulative slate amounted to a positive balance of R4.486 billion for petrol and diesel at the end of April 2025. 'In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy remains unchanged at zero cents per litre in the price structures of petrol and diesel with effect from the 4th of June 2025,' Maake said. ALSO READ: Cape Town F1 Grand Prix proposal aims to build on World Cup legacy
The Citizen
03-06-2025
- Business
- The Citizen
Here is the official fuel price for June
Here is the official fuel price for June Despite a stronger rand and favourable oil price movements in May, South African motorists will see only a slight drop in fuel prices this June as a new fuel levy hike eats into potential savings at the pump. The Department of Mineral Resources and Energy confirmed on Tuesday that the official fuel price adjustments will come into effect on Wednesday, June 4, 2025. While consistent over-recoveries throughout May pointed to a more significant decrease, the levy increase announced in the latest national budget has narrowed the benefit by around 15 cents per litre. As a result, 93 and 95 petrol prices will drop slightly by 5 cents per litre, while diesel will see a larger decrease of 37 cents per litre. Here is the June fuel prices: Fuel Change Petrol 93 decrease of 5 cents per litre Petrol 95 decrease of 5 cents per litre Diesel 0.05% (wholesale) decrease of 37 cents per litre Diesel 0.005% (wholesale) decrease of 37 cents per litre Illuminating Paraffin (Wholesale) decrease of 56 cents per litre LPGAS decrease of 89 cents per kg Meanwhile, motorists remain on edge as the final fuel prices hinge on a court ruling following an urgent application by the Economic Freedom Fighters (EFF) to suspend the recent fuel levy increase. The 2025 levy increase will see the total tax on petrol rising to R6.37, including the R2.18 Road Accident Fund levy. Finance Minister Enoch Godongwana raised the General Fuel Levy, and announced various government expenditure cuts, in his third Budget Speech that was proposed on May 21. Also read: Is there an outbreak of Staphylococcus in Pretoria? Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
