By: Natasha Archary
While Treasury has decided to grant an extension of the general fuel levy holiday, the price of petrol and diesel continues to soar.
Making a last minute announcement of the price increase for June, the Department of Mineral Resources and Energy unpacked the fuel prices further.
The R1.50 fuel levy which was cut in April and May will be extended until 6 July. This will then be increased by 75c on 7 July until 2 August and thereafter will be withdrawn.
A temporary respite from the levy still puts a strain on consumers as the price of petrol was increased by R2.43/litre for 93 octane, while 95 octane will increase by R2.33/litre.
This raises the inland price of petrol to a record R24.17 for 95 unleaded and R23.94 for 93 unleaded.
Diesel (0.05% sulphur) goes up by R1.10 per litre, while diesel (0.005% sulphur) increased by R1.07 per litre.
Which means the wholesale price of diesel also reaches new record highs, at R23.09/litre for high-sulphur 0.05% and low-sulphur 0.005% at R23.23.
Meanwhile, illuminating paraffin will now cast R1.56 more per litre. The price of LP gas decreases by 51 cents per kg.
According to the Department of Mineral Resources and Energy, the fuel levy holiday cannot last forever as the levies are used to reimburse the pipeline users for the applicable NERSA tariff of transporting fuel through said pipeline.
The levy is set by the Ministers of Energy and Finance in line with the expenditure budget of NERSA.
Levies are also meant to finance the cumulative under recovery of the industry.
The structure of BFP. #FuelPricesUnpacked. pic.twitter.com/6CReW2A4hS
— Department of Mineral Resources and Energy (@DMRE_ZA) May 30, 2022
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