Africa-Press – South-Africa. Petrol and diesel prices will rise in July, with the Department of Mineral and Petroleum Resources announcing the official changes to be implemented for July.
The higher prices at the pumps are primarily driven by the sharp rise in the oil price from the Israel-Iran conflict.
Although the impact of the conflict on oil and the rand was relatively short-lived, the swings were enough to push the average exchange rate and oil price for the month higher.
As a result, South African motorists are set for some pain at the pumps from Wednesday, 2 July. The following changes to the price of fuel were announced by the department –
Petrol 93 – increase by 55 cents per litre
Petrol 95 – increase by 52 cents per litre
Diesel 0.05% – increase by 82 cents per litre
Diesel 0.005% – increase by 84 cents per litre
The department explained that the main driver behind the higher fuel prices was the elevated average price of oil throughout June.
The average Brent Crude oil price increased from $63.95 to $69.36 during the period under review.
The main contributing factor is the recent geopolitical tension in the Middle East, between Israel and Iran, which raised fears of potential crude oil supply disruptions.
Israeli strikes on Iran early in June sent the oil price surging, with Brent Crude rising by as much as 13% in the aftermath.
This was the biggest daily gain in the oil price since Russia’s invasion of Ukraine, which resulted in sharp increases in fuel prices around the world and significantly higher inflation.
Traders feared a potential disruption to oil supply from the Middle East and the increased possibility of the closure of the crucial Strait of Hormuz, through which over a quarter of global oil flows.
After a US-brokered ceasefire on 23 June, the oil price retreated below $70 per barrel but remains elevated compared to May.
The department said that the average international petroleum product prices followed the increasing trend of crude oil prices.
This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 68.45 cents per litre (c/l), 100.48 c/l and 83.20 c/l respectively.
The rand benefited from a weaker dollar, with it strengthening, on average, from R18.11 to R17.84 per dollar during the period under review when compared to the previous one.
This led to lower contributions to the Basic Fuel Prices of petrol by more than 15.00 c/l, diesel and illuminating paraffin by over 16.00 cents per litre.
For More News And Analysis About South-Africa Follow Africa-Press
