South Africa’s Minister of Mineral Resources and Energy, Mr Gwede Mantashe, has just announced an adjustment to fuel prices based on what he described as current local and international factors.
The international factors included that South Africa not only imports crude oil but also finished products at the price set at the international level, with shipping costs also factored in.
Other reasons cited by the government for the adjustment in fuel prices include:
- The lifting of sanctions on Venezuela by the US, creating a positive outlook on supply.
- The low impact of Israel-Hamas conflict as it has not yet affected flow of crude oil even though it is happening in the Oil rich region of the Middle East.
As a result of the adjustments, consumers can expect some decreases in prices as well as some slight increase as well. In all, it appears like there are more decreases than there are increases, as evident in part of the announcement from the minister, seen below.
- Petrol (both 93 and 95 ULP & LRP): One hundred and seventy-eight cents per litre (178.00 c/l) decrease.
- Diesel (0.05% sulphur): Eighty five point zero eight cents per litre (85.08 c/l) decrease.
- Diesel (0.005% sulphur): Eighty two point zero eight cents per litre (82.08 c/l) decrease.
- Illuminating Paraffin (wholesale): Ninety seven cents per litre (97.00 c/l) decrease.
- SMNRP for IP: One hundred and thirty cents per litre (130.00 c/l) decrease.
- Maximum LPGas Retail Price: One hundred and forty-nine cents per kilogram (149.00 c/kg) increase.
