The Minister of Mineral Resources and Energy, Gwede Mantashe, today announced the adjustment of fuel prices, with effect from 6 July.
Based on current local and international factors, the fuel prices for July 2022 will be adjusted as follows:
- Petrol (both 93 ULP and LRP): R2.37 increase;
- Petrol (both 95 ULP and LRP): R2.57 increase;
- Diesel (0.05% sulphur): R2.31 increase;
- Diesel (0.005% sulphur): R2.30 increase;
- Illuminating Paraffin (wholesale): R1.66 increase;
- Maximum LP Gas Retail Price: R2.18 per kilogram decrease.
The Automobile Association (AA) has since issued a statement, saying the fuel price adjustments will hit already financially stretched-pressed consumers hard and put extra pressure on an already struggling economy.
According to the data, the movement in international petroleum prices is the main driver behind the increases. The value of the Rand appreciated on average against the US dollar in June resulting in a saving of around 20c/l to the increases, without which the basic increases would be higher.
“In addition to the increases to the basic fuel prices, the R1.50 relief off the General Fuel Levy (GFL) given by the government for May and June, was halved for July which adds to the increases. This means the increase of R1.82 to 95ULP is, effectively, an increase of R2.57. This, and other increases announced today, will certainly negatively impact on all South Africans and will, undoubtedly, play a big role in the economy going forward,” noted the Association.
The Association said while pressure is building on the government to formulate a solution to the rising fuel costs, short-term relief, while welcome, is not sustainable.
“We understand that government has little leeway in terms of international petroleum prices and the Rand/US dollar exchange rate, which is why we have called and will continue to press, for a review of the fuel price, an area where the government has control over the fuel price.
‘There is a need to interrogate all the components of the fuel price, to determine whether all these components are still necessary for the existing formula, and to establish if the current calculations of these components are correct. The longer this review is not initiated, the longer the country will wait for lasting solutions,” the Association said.