On Monday, the Department of Energy confirmed petrol prices for 93 and 95 Unleaded will drop moderately from Wednesday, 5 July 2023.
Petrol prices: Here’s how much a litre may cost from Wednesday, 5 July 2023
In a statement, the Energy Department revealed that from Wednesday, 93 and 95 Unleaded petrol is set to decrease by 24c and 17c, respectively, while users of 0.05% and 0.005% diesel will experience their first price hike in months ranging between 12c and 18c per litre.
The department confirmed adjustments in fuel prices for this month were due to:
- the slight drop in Brent Crude oil prices from $75.90 to $75.10 per barrel;
- recession fears and anticipated global economic slowdown. As a result, the US Federal Reserve left interest rates unchanged earlier this month, but warned of future increases;
- the average rand/dollar exchange rate totalling R18.98 during the period 26 April to 1 June 2023;
- the average international product prices of petrol, diesel and illuminating paraffin increased during the period under review while the price of LPG decreased;
- the rand appreciated, on average, against the US Dollar (from R18.99 to R18.64) Rand per USD during the period under review;
- in line with the provisions of the Self-adjusting Slate Levy Mechanism, there is no applicable Slate Levy to the price structures of petrol and diesel for July 2023; and, among others,
- in line with the Working Rules to determine the Basic Fuels Prices (BFP), the 95 Octane (unleaded) grade is the price-marker grade and the BFP-differential between 95 and 93 octanes is adjusted on the first Wednesday of each quarter. The BFP Octane differential has changed during the previous quarter and therefore the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone with effect from the 5th of July 2023.
“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 department explained.
Here is a look at the estimated petrol price changes expected on Wednesday, 5 July 2023.
PLEASE NOTE: The petrol price adjustments listed below are directly quoted from the Department of Energy’s monthly press release. Despite our best efforts to ensure accurate reporting, it is still the sole responsibility of the reader to double-check petrol prices. Swisher Post, its parent company, partners and affiliates shall not be held liable for any consequence that arises from the journalistic duties performed in sharing this content.
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R22.42 | -R0.17 |
Petrol 93 | R22.06 | -R0.24 |
Diesel 0.05% | R19.74 | +R0.18 |
Diesel 0.005% | R19.54 | +R0.12 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R21.77 | -R0.17 |
Petrol 93 | R21.41 | -R0.24 |
Diesel 0.05% | R19.10 | +R0.18 |
Diesel 0.005% | R18.91 | +R0.12 |
What goes into the final retail price of fuel in South Africa?
Determining the final retail price of petrol in South Africa relies heavily on the rand’s performance in currency markets and oil price movements. Using this information, the CEF can formulate basic fuel price (BFP) estimates which, in essence, offer South African importers a snapshot into the cost of buying petrol from an international refinery, transporting the product and ensuring it against possible losses at sea and on land.
However, before the retail price of petrol is finalised at petrol stations, several additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and injecting it into IP to curtail the mixing of IP and diesel)
- General Fuel levy (tax levied by the government)
- Slate levy (to finance the cumulative under-recovery of the industry)
- RAF levy (to compensate for people involved in road crashes and accidents)
- Petroleum products levy (reimbursement to the pipeline users for the applicable NERSA tariff on transporting fuel through the pipeline)
Additional costs
- Wholesale margin (markup to the price of a product to account for wholesaling costs)
- Service cost recoveries
- Storage, handling and delivery costs
- Distribution costs
- Dealers margin (commission to the fuel pump dealers for retail operation)
- Zone differential (applicable to inland regions)
- Customs and excise duty
Petrol price adjustments are generally made on the first Wednesday of every month by the Department of Energy.