The Department of Mineral and Petroleum Resources (DMPR) has confirmed the official fuel price adjustments that will take effect from Wednesday, 5 August, with diesel motorists facing steep increases while petrol users receive modest relief.
The latest adjustments follow a volatile month in global oil markets, as renewed conflict in the Middle East sent crude prices sharply higher before easing towards the end of July.
Conflict pushes oil prices higher
July began on a positive note, with Brent crude trading close to $70 a barrel as oil shipments through the Strait of Hormuz resumed during ceasefire negotiations between the United States and Iran.
However, that trend reversed after hostilities resumed midway through the month, temporarily disrupting shipping through the strategic waterway and pushing oil prices back towards $100 a barrel.
Although some tanker traffic later resumed, Brent crude remained elevated at around $83 per barrel by the end of the month, well above levels seen earlier in July.
Diesel hit hardest
The higher international oil price had a significant impact on South Africa’s fuel price recoveries.
Petrol’s over-recovery of around R2.50 per litre earlier in the month was almost entirely erased, ending July close to break-even.
Diesel experienced an even more dramatic turnaround, moving from an over-recovery of approximately R4.00 per litre to an under-recovery of about R1.80 per litre, paving the way for substantial increases at the pumps.
Slate levy provides petrol relief
Despite rising oil prices, petrol motorists avoided an increase after government reduced the slate levy by 53 cents per litre, helping offset the higher cost of imported fuel.
