PRETORIA: The Department of Mineral Resources and Energy (DMRE) has recently declared that, starting from this week's Wednesday, there will be an increase in the prices of all grades of petrol and diesel. Simultaneously, the price of illuminating paraffin is expected to rise, while the only decrease will be in the price of LP gas. The adjustments to the prices are as follows:
Petrol (both 93 and 95 Octane): An increase of 37 cents.
Diesel (0.05% sulphur): An increase of 72 cents.
Diesel (0.005% sulphur): An increase of 71 cents.
Wholesale illuminating paraffin: An increase of 71 cents.
Single Maximum National Retail Price for illuminating paraffin: An increase of 95 cents.
Maximum Retail Price of LPGas: A decrease of R1.61.
The DMRE provided an explanation for these price adjustments:
"The average Brent Crude oil price rose from $75.10 US Dollars to $79.75 USD during the review period. Consequently, the average international product prices of petrol, diesel, and illuminating paraffin followed the upward trend of crude oil prices during this time, resulting in higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 63.59 c/l, 99.09 c/l, and 98.71 c/l, respectively. However, LP Gas decreased due to lower prices of Propane and Butane.
"Moreover, the Rand experienced appreciation on average against the US Dollar [from R18.68 to R18.26 per USD] during the same review period, compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 27.64 c/l, 27.36 c/l, and 27.10 c/l, respectively.
"Additionally, the cumulative slate balance on petrol and Diesel at the end of June 2023 had a positive balance of R2.69 million. As a result, no slate levy is applicable in the petrol and diesel price structure for August 2023," the DMRE explained.
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