South Africa hit with major petrol price hike

The Central Energy Fund, on behalf of South Africa’s energy department, has announced fuel price increases for July 2022, with substantial increases for motorists driving petrol and diesel vehicles.

Unleaded 93 petrol will increase by R2.37 per litre on Wednesday, 6 July 2022, while unleaded 95 will be R2.57 more expensive.

That will push the inland petrol price to over R26 per litre, and over R25 on the coast.

Diesel wholesale prices will also increase substantially, with 50ppm going up by R2.30 per litre and 500ppm increasing by R2.31.

South Africa’s fuel price increases for July were summarised as follows:

• Unleaded 95 petrol — Increase of R2.57
• Unleaded 93 petrol — Increase of R2.37
• 50ppm diesel — Increase of R2.30
• 500ppm diesel — Increase of R2.31
• Illuminating paraffin — Increase of R1.56

“The average international product prices for Petrol, Diesel and Illuminating Paraffin increased during the period under review,” the Central Energy Fund stated.

While the rand was slightly stronger against the US dollar during the periods under review, it was not enough to offset the increase in overseas product prices.

The South African government also added R0.75 back onto the general fuel levy following two months of reprieve.

Finance minister Enoch Godongwana and energy minister Gwede Mantashe jointly announced on 31 May 2022 that the government was extending a temporary R1.50 reduction in the general fuel levy until July 2022.

From 6 July, they will reduce the relief to R0.75.

“The temporary relief will be withdrawn from 3 August 2022,” the Central Energy Fund stated.

“With effect from 06 July 2022, the Fuel Levy in the price structure of petrol and diesel will therefore amount to 319.0 c/l and 305.0 c/l respectively in the price structure of both petrol and diesel.”

The following table summarises South Africa’s petrol price changes for June 2022.

The differentials between 95 and 93 petrol grades are adjusted at the beginning of each quarter.

“The [basic fuel price] differentials between 95 and 93 petrol grades have changed and therefore the different price adjustments between the two grades.”

There was no change in the Slate Levy.

“The combined cumulative petrol and diesel Slate balances at the end of May 2022 amounted to a negative balance of R 14.973 billion,” the Central Energy Fund said.

“In line with the provisions of the self-adjusting Slate Levy mechanism, a Slate Levy of 52.62 c/l (no change) has been implemented into the price structures of petrol and diesel with effect from 6 July 2022.”

The price to refill petrol tanks of various standard sizes is shown in the table below.

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