Mantashe on fuel prices: AS could benefit from a reprieve in July

Higher gas prices could be suspended in July, Minister
mineral resources and energy, said Gwede Mantashe.

The recent fuel price increases are due to the
"international factors", including the carbon tax, in effect as of June.
1 2019, Mantashe said in a statement Tuesday late.

However, he said, "in the future, the wait is
that, unless there is a negative geopolitical event, everything indicates that
will be a reprieve in fuel prices for the month of July. "

Recent hikes were triggered by a combination of events it
I said.

"A current priority local factor is the new
applied carbon tax
announced by the Minister of Finance in February 2019, "
The Mantashe office said in a statement, adding that the fuel tax applicable to
Gasoline and diesel have increased "in line with" the announcement.

The minister also cited the implementation of the system of self-adjustment
slate tax which, as of May 5, would rise to 13.16 cents per liter of gasoline
and diesel. At the end of April 2019, the cumulative cumulative slate balance on
Gasoline and diesel account for less than R1.41 billion, said Mantashe.

"At the international level, the main reasons for the
increase are exchange Rand / Dollar
and the price of Brent crude oil, "said Mantashe. During
During the period under review, the rand depreciated against the US dollar from R14.14.
at R41.41.

"This has led to a higher contribution to the basic price of fuel
gasoline of 14.32 cents per liter, diesel 15.01 cents per liter and lighting
14.92 cents per liter of paraffin. "

The statement added: "The price of Brent crude oil, on the
On the other hand, saw a slight upward increase of 71.00 US Dollars (USD)
the barrel at 71.60 USD per barrel. Pressure on oil prices was caused
by the recent escalation of tensions between the United States of America and the
China."

The price of gasoline increased from 9 cents per liter to midnight,
while diesel jumped 33 cents per liter.