The average Brent Crude oil price increased from 79.75 US Dollars to 84.78 USD during the period under review, because of tightening supply resulting from production cuts by Saudi Arabia.International petroleum prices
“The average international product prices of petrol, diesel, illuminating paraffin and LPGas increased during the period under review due to High prices of petrol are as a result of low inventories and refinery outages, which affected the production of blending components used in summer grade petrol making it more expensive to produce.
Diesel and paraffin prices increased because of lower shipments of Russia’s Urals crude oil which is rich in middle distillates, as well as rising demand of middle distillates ahead of the winter season in the Northern Hemisphere. LPGas increased because of higher prices of Propane and Butane,” the department said.The department said the rand also depreciated on average, against the US Dollar during the period under review when compared to the previous one.
“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 29.60 c/l, 31.33 c/l and 31.58 c/l, respectively.”The department said the cumulative slate balance on petrol and Diesel at the end of July 2023 had a positive balance of is R1,3 million. “Therefore, there is no slate levy applicable in the petrol and diesel price structure for September 2023.”Minister of Mineral Resources and Energy Gwede Mantashe also approved a 5.0 c/l increase in the price structures of petrol to accommodate the wage increase for Forecourt employees in line with the Motor Industry Bargaining Council Agreement.