South African minister of mineral resources and energy Gwede Mantashe has announced the adjustment of fuel prices for July 2019 based on current local and international factors with effect from the 3 July 2019
South Africa's fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs.
The main reasons for the fuel price adjustments during the period under review include local and international factors, the minister stated in a media statement.
On the international front, during the period under review, the Rand depreciated on average against the USD from 14.41 to 14.62 Rand per dollar during the period under review compared to the previous one. This led to a higher contribution to the basic fuel prices on petrol by 10.60 cents per litre, diesel and illuminating paraffin by 11.60 cents per litre.
The main reason for the decrease was the fact that the Brent crude oil price decreased from US$71.29 per barrel to US$63.60 per barrel during the period under review.
The drop in the oil prices was due to the high level of the US stock inventories which resulted in more supply in the markets and uncertainty surrounding the conclusion of the trade deal between the USA and China, which led to lower prices of all the petroleum products in the international markets.
The Slate Levy will be reduced by 8.78 cents per litre from 13.16 cents per litre to 4.38 cents per litre in line with the Self-Adjusting Slate Levy Mechanism Rules.
Effective from 3 July 2019, the Slate Levy on Petrol and Diesel will be 4.38 cents per litre. At the end of May 2019, the combined cumulative Slate Balance on petrol and diesel amounted to minus US$39.22mn.
