Government extends reduction in general fuel levy

The minister of finance has announced an extension of the temporary reduction in the general fuel levy by 150.0 c/l until July 5, 2022, with effect from June 1, 2022.

The reduction in the levy was originally set for April and May 2022 only.

The fuel prices for June will now be adjusted as follows:

• Petrol (93 ULP and LRP): R2.43/l increase;
• Petrol (95 ULP and LRP): R2.33/l increase;
• Diesel (0.05% sulphur): R1.10/l increase;
• Diesel (0.005% sulphur): R1.07/l increase;
• Illuminating paraffin (wholesale): R1.56/l) increase;
• SMNRP for IP: R2.08/l increase;
• Maximum LPGas Retail Price: 51c/kg decrease.

In a statement on Tuesday afternoon, Minister of Mineral Resources and Energy Gwede Mantashe said the main reasons for the fuel price adjustments are due to the average Brent Crude oil price increasing from 104.78 US Dollars (USD) to 115.00 USD during the period under review. This in turn was due to increasing demand in the northern hemisphere, EU discussions regarding imposing sanctions on Russian crude oil and petroleum products, as well as the increase of crude oil throughput by refiners to take advantage of high refining margins.

Further, he said the average international product prices of petrol, diesel and Illuminating Paraffin increased during the period under review while the price of LPG decreased, and the rand depreciated, on average, against the US Dollar (USD), from 14.90 to 15.95 Rand per USD during the period under review when compared to the previous one.

Other levies

The slate levy applicable remains in place at 52.62 c/l.

As of June 1, 2022, the Demand Side Management Levy (DSML) will be removed from the price structure of Unleaded Petrol (ULP) 95 Octane in the inland market, to provide some relief to applicable motorists.

“The levy of 10.00 c/l was introduced in the price structures of 95 ULP that is sold in the inland market during 2005. The purpose of the levy was to discourage motorists from wasting octane by using 95 ULP instead of 93 ULP in their vehicles.”