Latest news with #LPGas
Daily Maverick
01-07-2025
- Business
- Daily Maverick
July fuel price will cost an extra R25 a tank, on average
We got it wrong… South African motorists won't be seeing a fuel price drop this July. Instead, pump pain is back with a vengeance. 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
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
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!
