Official July 2016 Fuel Adjustments
The Department of Energy confirmed that from midnight on Tuesday, 5 July 2016:
- 95 ULP & LRP: +8c/l
- 93 ULP & LRP: +11c/l
- Diesel (all grades): +41c to +42c/l
- Illuminating paraffin (wholesale): +43c/l
- Retail paraffin price: +57c/l
- LP Gas: +12c/kg
Why Prices Are Increasing
A higher global oil price and rising international petroleum product costs were the main drivers behind the increase. However, the strengthening Rand helped soften the blow.
The stronger Rand cushioned fuel prices by over 17c/l during the review period.
Motorists have endured multiple fuel price hikes since the start of the year. In June, petrol increased by 52c/l and diesel by a massive 76c/l.
Market Volatility Remains a Risk
The Automobile Association (AA) warned that global uncertainty continues to pose a risk to South African fuel prices. The aftermath of the UK’s Brexit referendum has created instability in world markets, increasing the likelihood of further price shocks.
“Any additional political or economic shocks are likely to have a strong impact on South African fuel users.”
— Automobile Association (AA)
With global oil markets unstable and the Rand vulnerable to political events, motorists should prepare for continued fuel price volatility in the short to medium term.
