New Fuel Prices Bring Mix Of Relief And Frustration For Motorists

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Motorists are expected to feel some relief from their pockets due to the positive fuel price adjustments for July 2023. However, not everyone on the road will experience the same.


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The latest adjustment to fuel prices has brought mixed reactions from motorists for the month of July. While some may feel some weight lift from their pockets, others continue to feel the pinch.

From 5 July 2023, the price for 93-unleaded petrol will come down by 24 cents a litre, while 95-unleaded will cost 17 cents less. But, on the other side of the coin, diesel prices will rise by between 12 and 18 cents a litre, depending on the grade.

Minister of Mineral Resources and Energy, Mr. Gwede Mantashe, announced the fuel price adjustments on 4 July 2023. South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, for example, shipping costs.

The Department of Mineral Resources and Energy (DMRE) has explained some of the contributing factors to this month's fuel price adjustments. 

Robert Maake says:

The Rand depreciated against the US Dollar, oil prices decreased slightly, prices of propane in butane decreased which lead to lower prices of LP gas, [and] there's no slate levy applicable on both petrol and diesel. 

The fuel prices for July 2023 will be adjusted as follows:

  • Petrol (both 93 ULP and LRP): Twenty-four cents per litre (24.00 c/l) decrease
  • Petrol (both 95 ULP and LRP): Seventeen cents per litre (17.00 c/l) decrease
  • Diesel (0.05% sulphur): Eighteen cents per litre (18.00 c/l) increase
  • Diesel (0.005% sulphur): Twelve cents per litre (12.00 c/l) increase
  • Illuminating Paraffin (wholesale): Four cents per litre (4.00 c/l) decrease
  • SMNRP for IP: Five cents per litre (5.00 c/l) decrease
  • Maximum LPGas Retail Price: two hundred and ninety-six cents per kilogram (296.00 c/kg) decrease

While the decrease of some fuel prices is certainly welcomed, it may be short-lived due to the strain of the currency, as well as international dynamics that could possibly change the general direction of prices.

Koketso Mano added: 

While we should continue to find reprieve from oil prices this year, relative to last year, the risk to the Rand is still material especially when considering key local risk events that are still yet to unfold; and we [the Department] think its undervaluation should at least continue in the near term, adding upward pressure to imported inflation. 

That said, we also predict that fuel prices should find support from a seasonal uplift in demand, particularly in the Northern hemisphere, as well as the very contained improvement in activity in China in the second half of the year. 

Fuel prices also saw a decrease in June of this year, much to the relief of many consumers and which reportedly affected all conventional fuel sources (including paraffin), with only gas prices expected to go in the opposite direction.

The decrease in fuel prices will likely ease the financial burden on motorists and offer some relief for households dependent on paraffin for heating and lighting purposes, especially during loadshedding.

 

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Petrol station

Much to the relief of many consumers, the cost of fuel is expected to drop this week. The decrease will reportedly affect all conventional fuel sources, including paraffin, with only gas prices expected to go in the opposite direction.

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