The Department of Mineral and Petroleum Resources (DMPR) has confirmed that the price of petrol, both 93 and 95 grades, will increase by R1.34 a litre from September 2, while the price of diesel (0.05% sulphur) will increase by R2.94 a litre and the price of diesel (0.005% sulphur) will increase by R3.15 a litre.

The price of illuminating paraffin will also increase by R2.13 a litre and the maximum retail price of liquefied petroleum gas (LPG) by 69c/kg and by 79c/kg for the Western Cape.

This comes as the average Brent crude oil price increased from $82.37/bl to $87.88/bl as a result of the continued tension between the US and Iran, uncertainty regarding the flow of oil through the Strait of Hormuz and higher shipping costs.

The DMPR notes that the average international product prices of petrol, diesel and illuminating paraffin increased on the back of supply shortages caused by the continued conflict between Russia and Ukraine as well as owing to lower global inventories of products. These factors led to higher contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by R1.28, R3.21 and R2.39, respectively.

Meanwhile, the rand appreciated against the dollar, from R16.46 to R16.21, over the review period, leading to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 21c, 29c and 27c, respectively.

Further, the DMPR points out that the cumulative slate amounted to a negative balance of R9.52-billion for petrol and diesel at the end of July and, in line with the provisions of the Self-Adjusting Slate Levy Mechanism, the slate levy of 83.28c a litre will be implemented in the price structures of petrol and diesel with effect from September 2. The Slate Levy has increased by 21.90c a litre.

In addition, Mineral and Petroleum Resources Minister Gwede Mantashe has approved a 4.9c a litre increase in the price structures of petrol to accommodate the wage increase for forecourt employees, in line with the Motor Industry Bargaining Council multi-year wage settlement agreement signed on August 23. This increase will also take effect from September 2.