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DOE Clarifies Adjustment to Fuel Prices

June 7, 2019

Department of Energy

7 June 2019

A key local factor driving the latest increase in fuel prices is the newly implemented Carbon Tax Levy.

The energy department announced this in a statement on the adjustment of fuel prices effective from 5 June 2019.

According to the department, the tax came into effect on 1 June 2019 and “in line with that announcement, the Fuel Levy applicable to Petrol and Diesel will increase by 9.0c/l and 10.0c/l respectively with effect from the 5 June 2019”.

Another local factor is the implementation of the Self-Adjusting Slate Levy Mechanism Rules.

“Effective from 5 May 2019, the Slate Levy on Petrol and Diesel will be 13.16 cents per litre”.

The department pointed out that, at the end of April 2019, the combined cumulative Slate Balance on Petrol and Diesel amounted to minus R1.41 billion.

As regards international factors, the main reasons for the increase are the Rand / Dollar exchange rate and the Brent Crude Oil Price.

During the period under review, the Rand depreciated against the US Dollar from R14.14 to R14.41 and the Brent Crude Oil Price increased slightly from 71.00 US Dollars (USD) per barrel to 71.60 USD per barrel.

Fuel price increases for June 2019 include a 9.00 c/l increase for Petrol (93 and 95 Octane, ULP and LRP); a 33.16 c/l increase for Diesel and a 8.00 c/l increase for Illuminating Paraffin (wholesale).