News / National
Ramaphosa hikes petrol, diesel prices
01 Jun 2022 at 06:28hrs | Views
The price of 95-octane unleaded petrol will rise by R2,33 a litre from today, while 93-octane unleaded petrol will go up by R2,43 a litre, the Department of Mineral Resources and Energy announced yesterday.
Diesel prices will rise by R1,10 (0.05 percent sulphur) per litre and R1,07 (0.005 percent sulphur) per litre respectively, while illuminating paraffin will be R1,56 more expensive per litre.
The maximum liquefied petroleum gas (LPG) retail price will fall by 51c per kg.
The fuel prices were pushed higher by oil, with the average Brent crude oil price increasing from US$104.78 a barrel to US$115 over the past month.
Today's increases are smaller than feared after Treasury decided to grant an extension of the reduction in the general fuel levy.
The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices.
Around R6 billion of the state's strategic oil reserves were sold to fund the levy cut. But the sale will not entirely fund the extension.
The R1.50 relief will be extended from 1 June until 6 July, followed by a downward adjustment to the relief for the second month - to 75c per litre from 7 July until 2 August.
It will be withdrawn from 3 August, according to a joint statement from National Treasury and the Department of Mineral Resources and Energy.
"Due to this significant monthly price increase, the Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy," the statement said.
Diesel prices will rise by R1,10 (0.05 percent sulphur) per litre and R1,07 (0.005 percent sulphur) per litre respectively, while illuminating paraffin will be R1,56 more expensive per litre.
The maximum liquefied petroleum gas (LPG) retail price will fall by 51c per kg.
The fuel prices were pushed higher by oil, with the average Brent crude oil price increasing from US$104.78 a barrel to US$115 over the past month.
Today's increases are smaller than feared after Treasury decided to grant an extension of the reduction in the general fuel levy.
The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices.
Around R6 billion of the state's strategic oil reserves were sold to fund the levy cut. But the sale will not entirely fund the extension.
The R1.50 relief will be extended from 1 June until 6 July, followed by a downward adjustment to the relief for the second month - to 75c per litre from 7 July until 2 August.
It will be withdrawn from 3 August, according to a joint statement from National Treasury and the Department of Mineral Resources and Energy.
"Due to this significant monthly price increase, the Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy," the statement said.
Source - News24
