Latest news with #DepartmentofMineralandPetroleumResources
The Citizen
03-07-2025
- Business
- The Citizen
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!
IOL News
03-07-2025
- Business
- IOL News
Gwede Mantashe unveils R2. 86 billion budget to revive SA's mining and petroleum sectors
Minister of Mineral and Petroleum Resources, Gwede Mantashe says the R2.86 billion budget will drive investment, transformation, and regulatory reform to ensure South Africa's mineral wealth benefits all and supports inclusive economic growth. Minister of Mineral Resources and Petroleum Gwede Mantashe says the reconfiguration of the Department of Mineral and Petroleum Resources (DMPR) has created an opportunity to streamline regulation and promote investment in South Africa's mineral and petroleum sectors. Tabling his department's budget in Parliament on Wednesday, Mantashe said the department has been allocated R2.86 billion for the 2025/26 financial year with R1.16 billion earmarked for transfers to public entities. 'Although constrained due to prevailing economic hardships, this budget is geared towards enabling the department to efficiently regulate the mining and petroleum sectors for transformation, inclusive growth, development, and ensure that all South Africans derive sustainable benefit from the country's natural wealth,' Mantashe told MPs. He noted that despite geopolitical tensions and depressed commodity prices, particularly for platinum group metals (PGMs), manganese, and chrome, South Africa's mining sector still contributed R451 billion to GDP in 2024, sustaining a 6% share. Export earnings totaled R674 billion, a slight decline from R678 billion in 2023. However, jobs in the sector fell by 0.9%, with the PGM sector hardest hit. Mantashe reported progress in regulatory reforms. 'Since our last tabling of the budget last year, the department has finalised and published for public comment the draft Mineral Resources Development Bill (MPRDB),' he said. The revised Petroleum Products Bill is also being finalised for Cabinet submission, while the Upstream Petroleum Resources Development Act (UPRDA) signed into law in October 2024 aims to attract investment in the oil and gas sector.
The South African
01-07-2025
- Business
- The South African
July fuel price confirmed - Here's what it means for your wallet
The Department of Mineral and Petroleum Resources released the official fuel price for July 2025. The changes will take effect on Wednesday, 2 July. Petrol 93 and 95 will increase by 55 and 52 cents per litre respectively. Diesel 0.05% and 0.005% will hike by 82 and 84 cents per litre in wholesale price. Illuminating Paraffin will increase by 67 cents and 89 cents per litre. The department said the rand appreciated against the US Dollar in June, which led to a lower contribution to the Basic Fuel Prices. The fuel price increase is attributed to the average Brent Crude oil price increasing from 63.95 to 69.36 US Dollars. The main contributing factor is the recent tension in the Middle East, which raised fears of potential crude oil supply disruptions. The average international petroleum product prices followed the increasing trend of crude oil prices. The department said this led to higher contributions to the Basic Fuel Prices. However, the prices of Propane and Butane decreased slightly. The fuel price increase comes after the latest Household Affordability Index found that zero-rated foods in the household food basket increased by 4.1% in the year to June. The report compiled by the Pietermaritzburg Economic Justice & Dignity Group tracks the monthly prices of basic foods across the country. As a result, many South African have taken to social media to express anger about the price hike, saying they are already struggling to make ends meet. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news
The Citizen
04-06-2025
- Business
- The Citizen
Fuel prices decrease from Wednesday
All grades of fuel are expected to decrease as from Wednesday. The fuel price adjustments were announced by the Department of Mineral and Petroleum Resources on Tuesday. The price adjustments are as follows: Petrol 93 (ULP & LRP): 5c decrease. Petrol 95 (ULP & LRP): 5c decrease. Diesel (0.05% sulphur): 36c decrease. Diesel (0.005% sulphur): 36c decrease. Illuminating Paraffin (wholesale): 56c decrease. Single Maximum National Retail Price for illuminating paraffin: 75c decrease. Maximum LPGas Retail Price: 89c per kilogram decrease. '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. 'The average international petroleum product prices of petrol increased (under recovery) due to the switching costs to summer fuel grade in preparation for summer driving season in the Northern Hemisphere. The prices of diesel and illuminating paraffin followed the decreasing trend of crude oil. 'These factors led to higher contributions to the Basic Fuel Prices of petrol by 19.11 cents per litre (c/l) and lower contributions to the Basic Fuel Prices of diesel and illuminating paraffin by 11.91 c/l and 16.70 c/l respectively,' the department said. Furthermore, the Rand strengthened during this period, leading to lower prices. The increase in the fuel levy is also expected to be implemented this month. 'Therefore, the Fuel Levy in the price structures of petrol and diesel will increase to 415.00 c/l and 402 c/l, respectively. The Road Accident Fund levy remain unchanged at 218.00 cents per litre on the price structures of petrol and diesel,' the department said. – At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
16-05-2025
- Business
- The Citizen
SA created 159 new mines in five years, creating over 15,000 jobs
The establishment of new mines follows a structured application process overseen by the Department of Mineral and Petroleum Resources. South Africa has established 159 new mining operations over the past five years, creating over 15 000 direct jobs according to Minister of Mineral and Petroleum Resources, Gwede Mantashe. The information was revealed in response to parliamentary questions posed by MK Party MP Mzwanele Manyi regarding the state of mining development in the country. '159 mines were established over the past five years,' Mantashe confirmed, adding that '15,131 jobs were created through the granting of the specified mining rights.' New mining operations and registration process The establishment of new mines follows a structured application process overseen by the Department of Mineral and Petroleum Resources. To improve this process, the department has recently procured 'a streamlined online licensing system to improve transparency and efficiency in application processes,' Mantashe explained in his response to EFF MP Nqobile Matilda Mhlongo. This new system forms part of broader efforts to 'improve regulatory certainty and stakeholder engagement, creating a more attractive environment for both local and international investors,' the minister added. Mantashe said the department ensures sustainable mining practices through strict regulatory oversight. 'The department ensures that mining activities are conducted sustainably by applying the principles of the National Environmental Management Act (Nema) when granting mining licences.' He added that each mining operation must comply with environmental regulations before receiving approval. 'Each mining right is accompanied by an approved Environmental Authorization, which outlines measures to address potential ecosystem disturbances and biodiversity loss,' the minister explained. Moreover, he stated that the department 'also conducts regular inspections to monitor compliance.' ALSO READ: Here's what some of South Africa's SOE bosses earn Community development through mining Mining companies operating in South Africa are required to contribute to local development as part of their operating agreements. According to Mantashe, 'the Department ensures that the development of mining balances social, economic and environmental sustainability'. This approach is formalised through mandatory development plans. 'Each approved mining licence includes a Social and Labour Plan (SLP), outlining the company's development commitments,' he noted. These plans have resulted in tangible benefits, with 'notable projects including the construction of the Malekana Steel Bridge in Limpopo and the completion of JS Skenjana Secondary School in the Eastern Cape'. ALSO READ: R16m Gauteng gold bust: Pair arrested after tip-off Mineral beneficiation shows mixed progress The department has implemented legislation to encourage local processing of minerals rather than simply exporting raw materials. In his response to Manyi, Mantashe highlighted that 'The department has implemented the Precious Metals Act and the Diamonds Act both of which have provisions for supporting domestic beneficiation by availing of precious metals and diamonds for domestic beneficiation through the State Diamond Trader (SDT) and South African Diamonds and Precious Metals Regulator (SADPMR).' Results from these beneficiation initiatives have been mixed so far. 'Between 2022 and 2023, gold jewellery fabrication declined from 1482kg to 1030kg,' Mantashe reported. However, other minerals showed improvement: 'Domestic platinum jewellery fabrication grew from 50kg to 121kg in 2022, whilst diamonds beneficiation increased from 223,005 in 2022 to 234,109 in 2023.' ALSO READ: Tshwane's R54.6bn budget draws mixed reactions Tackling illegal mining challenges Illegal mining remains a significant challenge for South Africa's mineral sector. In addressing Mhlongo's questions about this issue, Mantashe said the department had come up with a comprehensive approach involving multiple government agencies. 'An Interdepartmental Task Team made up of the DMRE, Saps, Home Affairs, Justice and Sars is working together to identify, disrupt, and prosecute illegal mining activities,' the minister explained. The department's strategy includes several key components to address the problem: 'Efforts have been made to seal off and rehabilitate derelict mines, cutting off access for illegal miners and addressing safety and environmental risks,' Mantashe noted. Additionally, the department is 'working with the Reserve Bank and Sars to crack down on the illicit trade of minerals like gold and chrome to protect the formal economy.' To strengthen enforcement capabilities, the Department has deployed 'more trained mining inspectors to illegal mining hotspots, working in coordination with law enforcement agencies.' Legal frameworks are also being reinforced, with 'revisions to the MPRDA underway to increase penalties and classify illegal mining as a serious economic crime to enhance enforcement powers.' Modern technology is being incorporated into these efforts as well. 'Drones and satellite surveillance are being piloted to monitor illegal activity, supported by intelligence-led operations that have resulted in successful interventions and arrests,' according to the minister. Community engagement forms another important element of the strategy, with 'awareness campaigns launched to educate communities about the risks of illegal mining, while promoting legal and sustainable small-scale mining alternatives.' NOW READ: Nearly 2 000 arrested during nationwide Vala Umgodi operations in April
