The fuel price is going up with effect from Wednesday 04 July, the Department of Energy has announced.
“The Minister of Energy, Mr. Jeff Radebe, announces the adjustment of fuel prices for July 2018 based on current local and international factors with effect from 04 July 2018,” said the Energy department in a statement.
The department attributed the increase to the Rand/US Dollar exchange rate, decrease in the prices of crude oil and the import prices of petroleum products.
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, e.g. shipping costs.
“The Rand’s movements were mainly influenced by global factors. The market has started to become worried about the effect that the trade war between the USA and China will have on the global economy.
“The main reason for the lower crude oil prices is that the Organisation of Petroleum Exporting Countries (OPEC) and its allies agreed to increase production in order to retake market share from rivals and to calm prices to avoid blunting demand growth during their meeting on 22nd June 2018,” said the department.
Based on current local and international factors, the fuel prices for July 2018 will be adjusted as follows:
- 93 ULP and LRP – 26 cents per litre increase
- 95 ULP and LRP – 23 cents per litre increase
- Diesel 0.05% Sulphur – 26 cents per litre increase
- Diesel 0.005% Sulphur – 24 cents per litre increase
- Illuminating Paraffin (wholesale) – 22 cents per litre increase
- LP Gas – 37.00 c/kg increase