The Department of Mineral Resources Energy (DMRE) has released fuel price adjustments for June 2022, showing a sharp increase for gasoline and diesel.
The sharp increases come even as the National Treasury extends previously announced fuel price interventions for another two months – until the start of August.
With the extension, R1.50 will be removed from the General Fuel Tax in June and then halved to 75 cents per liter in July – with the remaining 75 cents fed back into the price of fuel.
As an additional, more permanent intervention, the DMRE will remove 10 cents per liter from the price of 95 (domestic) gasoline by removing a demand management levy.
The base price of fuel will also be reduced by 3 cents per litre, he said, and the government will also seek to partially deregulate the price of petrol 93 in the future.
These interventions will have a significant impact on the budget, underlined the Treasury in a note Tuesday, May 31.
The proposed temporary fuel charge reduction will be accommodated within the current financial framework in a manner consistent with the financial strategy outlined in the budget. Any changes, if necessary, will be announced in the 2022 medium-term fiscal policy statement.
However, even with the interventions in place, motorists will still see a sharp rise in fuel prices from Wednesday June 1, 2022.
Prices will be adjusted as follows:
|Petrol 95||Increase from 233 cents per liter||Increase 243 cents per liter|
|Petrol 93||Increase 243 cents per liter||Increase 243 cents per liter|
|Diesel 0.05%||Increase 110 cents per liter||Increase 110 cents per liter|
|Diesel 0.05%||Increase 107 cents per liter||Increase 107 cents per liter|
|Illuminating paraffin||Increase 156 cents per liter||Increase 156 cents per liter|
The average price of Brent Crude Oil rose from $104.78 to $115 during the review period.
The main contributing factors are:
- Increase in demand during the summer driving season in the northern hemisphere.
- EU discussions regarding the imposition of sanctions on crude oil and petroleum products from Russia.
- Refiners increasing throughput of crude oil to take advantage of high refining margins.
Average international prices for gasoline, diesel and illuminating paraffin products increased during the period under review while the price of LPG decreased.
The gasoline market is also tightening due to the summer driving season in the northern hemisphere. This led to higher refining margins resulting in higher finished product prices.
The rand, meanwhile, depreciated, on average, against the US dollar, from 14.90 rand to 15.95 rand over the period under review.
In anticipation of rising fuel prices, the ministry has offered some fuel saving tips to help motorists mitigate the higher prices. These include:
- Always use the grade of motor oil recommended for your car.
- If you have more than one car at home, use the most fuel efficient one, especially for long trips.
- Lighten the load on your vehicle.
- Troubleshoot minor and major car service issues.
- Travel earlier or later to avoid known traffic spikes.
- Use the air conditioner only when absolutely necessary.
Here’s how price changes will be reflected at the pump:
|Interior||May official||June official|
|0.05% diesel (large)||R21.99||R23.09|
|0.005% diesel (bulk)||R22.16||R23.23|
|Coastal||May official||June official|
|0.05% diesel (large)||R21.34||R22.44|
|0.005% diesel (bulk)||R21.52||R22.59|
Read: South Africa’s petrol price isn’t perfect – but changes could make it worse: fuel group