THE Department of Energy has published the latest fuel price adjustments for July 2021, showing a hike in prices across the board.
Petrol is set to increase by 29 cents a litre of 93 unleaded petrol and leaded petrol will increase by 26 cents a litre.
Diesel will see an increase of 42 cents and illuminating paraffin by 36 cents.
Petrol and diesel prices are largely determined by the oil price, as well as rand strength, given that South Africa must buy oil in the US dollar.
This is how fuel prices will change on Wednesday, 7 July 2021:
- Petrol 95: increase of 26 cents per litre;
- Petrol 93: increase of 29 cents per litre;
- Diesel 0.05%: increase of 42 cents per litre;
- Diesel 0.005%: increase of 41 cents per litre;
- Illuminating Paraffin: increase of 36 cents per litre.
Movement in prices is typically affected by two main factors – international petroleum costs, and the movement in the rand/dollar exchange rate.
The average international product prices for petrol, diesel and illuminating paraffin increased during the period under review, and the rand appreciated against the US dollar during the period under review, on average, when compared to the previous period.
The average rand/US dollar exchange rate for the period 28 May 2021 to 01 July 2021 was 13.9219 compared to 14.1110 during the previous period.
This led to a lower contribution to the Basic Fuel Prices (BFP) on petrol, diesel and illuminating paraffin by 10.12 c/l, 9.78 c/l and 9.48 c/l respectively.
In terms of the Working Rules to administer the BFP, the differentials between 95 and 93 petrol grades are adjusted at the beginning of each quarter.
The BFP differentials between 95 and 93 petrol grades have changed and therefore the different price adjustments between the two grades.
- Own Correspondent
