August 2022 to bring fuel price cuts

Date:2 August 2022

The August 2022 fuel price revisions are official, and after a protracted period of harsh price increases, motorists will finally see fuel price decreases.

In the first half of 2022, fuel prices in South Africa skyrocketed, placing a severe strain on household budgets whilst depressing commodity prices.

The mid-month fuel price for July 2022 showed that the price of fuel would be reduced in August 2022. As a result of the announcement of fuel price reductions that would provide some respite to motorists who were severely overburdened, that signal came to pass toward the end of July, according to cars.co.za.

The decrease was influenced by a number of variables, including the decline in Brent Crude oil and petroleum product prices throughout the review period accompanied by a declining demand for Brent Crude oil. The depth of the fall in fuel prices was however diminished by the Rand’s deterioration versus the dollar during the same time period. Additionally, on August 2, 2022, the government-imposed reduction of the General Fuel Levy (75c/l) is scheduled to stop.

Fuel Prices Will Drop in August 2022

The changes to fuel prices will go into effect on Wednesday, August 3, 2022.

  1. The price of gasoline (93/95 ULP and LRP) will drop by R1.32 per litre.

  2. Diesel with 0.05 percent sulfate will cost 88 cents less per liter.

  3. Diesel with 0.005 percent sulfur will cost 91 cents less per liter.

  4. Paraffin for lighting will cost R1.44 less per litre.

 

The Automobile Association (AA) earlier in July 2022 emphasized that despite the anticipated drops, fuel costs in South Africa are still high and that the prior significant hikes will continue to have an impact on the economy in the months ahead.

“Decreases offer immediate relief but increases filter into the economy over time, especially as those sectors affected by them don’t immediately adjust their prices downward but instead wait for more consistent fuel cuts that lower their input costs. We stand by our call that a review of the fuel price structure, and an audit of the components that comprise the fuel price, is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country,” according to the AA.

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