The Department of Mineral Resources Energy (DMRE) has published the fuel price adjustments for June 2022, showing a hefty increase for both petrol and diesel.
The steep hikes come even as National Treasury extends the previously-announced fuel price interventions for an additional two months – to the beginning of August.
Through the extension, R1.50 will be taken off the general fuel levy in June, and will then be halved to 75 cents per litre in July – with the other 75 cents being fed back into the fuel price.
As an additional, more permanent intervention, the DMRE will scrap 10 cents per litre from the price of petrol 95 (inland) by removing a demand-side management levy.
The basic fuel price will also be cut by 3 cents per litre, it said, and the government will also look to partially deregulate the price of petrol 93 in the future.
These interventions will have a significant impact on the budget, Treasury stressed in a note on Tuesday (31 May).
The proposed temporary reduction in the fuel levy will be accommodated in the current fiscal framework in a manner that is consistent with the fiscal strategy outlined in the Budget. Any changes, if required, will be announced at the time of the 2022 Medium Term Budget Policy Statement.
However, even with the interventions in place, motorists will still see a big jump in fuel prices from Wednesday, 1 June 2022.
Prices will be adjusted as follows:
|Petrol 95||Increase of 233 cents per litre||Increase of 243 cents per litre|
|Petrol 93||Increase of 243 cents per litre||Increase of 243 cents per litre|
|Diesel 0.05%||Increase of 110 cents per litre||Increase of 110 cents per litre|
|Diesel 0.05%||Increase of 107 cents per litre||Increase of 107 cents per litre|
|Illuminating Paraffin||Increase of 156 cents per litre||Increase of 156 cents per litre|
The average brent crude oil price increased from $104.78 to $115 during the period under review.
The main contributing factors are:
- Increasing demand amid the summer driving season in the northern hemisphere.
- EU discussions regarding imposing sanctions on crude oil and petroleum products from Russia.
- The increase of crude oil throughput by refiners to take advantage of high refining margins.
The average international product prices of petrol, diesel and illuminating paraffin increased during the period under review while the price of LPG decreased.
The petrol market is also getting tight due to the summer driving season in the northern hemisphere. This has led to higher refining margins resulting in high prices of finished products.
The rand meanwhile, depreciated, on average, against the US dollar, from R14.90 to R15.95 during the period under review.
In preparation for the fuel price hikes, the department has offered some fuel-saving tips to help motorists mitigate the higher prices. These include:
- Always use the recommended grade of motor oil for your car.
- If you have more than one car at home, use the most fuel-efficient one, especially for longer trips.
- Lighten the load in your vehicle.
- Resolve minor and major car service issues.
- Travel earlier or later to avoid the known traffic peaks.
- Use the air conditioner only when absolutely necessary.
This is how the price changes will reflect at the pumps:
|Inland||May official||June Official|
|0.05% diesel (wholesale)||R21.99||R23.09|
|0.005% diesel (wholesale)||R22.16||R23.23|
|Coastal||May official||June Official|
|0.05% diesel (wholesale)||R21.34||R22.44|
|0.005% diesel (wholesale)||R21.52||R22.59|