Residents are lining up at fuel stations this afternoon following news that the petrol price will increase from Wednesday, 2 July.
The Minister of Mineral and Petroleum Resources announced the increase in fuel prices this morning, based on current local and international factors. According to the department the country’s fuel prices are adjusted monthly, informed by international and local factors. South Africa imports both crude oil and finished products at a price set at the international level, including importation costs such as shipping costs.
Factors that played a role in the increase are the tensions in the Middle East between Israel and Iran, with fears that it could disrupt the supply of crude oil. The price for 93 and 95 petrol will increase by 52 to 55 cents per litre and diesel will increase by 82 to 84 cents per litre. Wholesale illuminating paraffin will cost 67 cents more per litre. The maximum retail price of LP Gas will decrease by 57 cents per kilogramme, except for the Western Cape which will see an increase of R1,90 per kilogramme.
This increase follows the approval by the Minister of 14% increase in Supply Cost Recovery on the Maximum Refinery Gate Price (MRGP) of LPGas that is imported through the Port of Saldanha Bay (Western Cape) as an interim measure, for a period of 24 months. Accordingly, the interim MRGP in Western Cape will be R15,22 per metric ton (845,018 c/l), excluding VAT, for the period of 2 July to 5 August. The Maximum Retail Price of LPGas in the Western Cape will be R36,08.
