More expensive Brent Crude Oil and a weaker rand contributed significantly to the increase in August fuel prices.
South African motorists can expect a sharp increase in the price of fuel in August. The Department of Mineral Resources and Energy announced the effective fuel prices from 4 August on Saturday, 31 July. The price of both grades of petrol increased by nearly one rand per litre while diesel is up by more than 50 cents.
Energy minister Gwede Mantashe said the fuel prices for August 2021, based on a number of local and international factors, will be adjusted as follows:
The department said the fuel prices schedule for the different zones will be released on 3 August. Petrol is now expected to cost more than R18 per litre in South Africa’s inland regions.
The factors that influence how the fuel prices are adjusted include the import of the oil products – crude oil and finished products – used, which are set at the international level, including shipping and other costs.
“The average Brent Crude oil price increased from $73 to $74 per barrel during the period under review,” said the department.
This increase had a knock-on effect on the prices of refined petroleum products and led to higher contributions to the Basic Fuel price by 48.29 cents per litre, diesel by 16.37 cents per litre and 15.53 cents per litre and illuminating paraffin by 17.76 cents per litre.
The rand also depreciated against the dollar under the review period, which also affected the increase and a 6.58 cents per litre levy will be applied to the price structures of petrol and diesel.