The Department of Mineral Resources and Energy (DMRE) has published the official fuel price adjustments for South Africa in May, showing that all grades of petrol are going up by 37c per litre tomorrow, 1 May 2024, while diesel is dropping by as much as 36c per litre.
The DMRE attributes these changes to a rise in international product prices for petrol and a drop in those for diesel, as well as a depreciating Rand/US Dollar exchange rate.
Petrol up, diesel down
The price of Brent Crude oil, the main determinant of international petroleum product prices, rose from US$86.09/barrel on 27 March to US$89.01/barrel by 29 April.
This resulted in an under-recovery in petrol costs of 34c/litre and an over-recovery in diesel of 33-39c/litre, depending on the grade.
Simultaneously, the Rand lost purchasing power against the US Dollar during the period under review.
The average Rand/US Dollar exchange rate stood at R18.8689/dollar on 27 March and rose to R18.9036/dollar by 25 April, leading to a higher contribution to the Basic Fuel Prices of petrol and diesel by 2.59c/l and 2.51c/l, respectively.
According to these elements, fuel prices in South Africa this Wednesday are being adjusted as follows:
- Petrol 93 – Increase of 37c a litre
- Petrol 95 – Increase of 37c a litre
- Diesel 0.05% – Decrease of 30c a litre
- Diesel 0.005% – Decrease of 36c a litre
For May, the Slate Levy remains unchanged at a rate of 21.92c/l.
The drop in diesel prices can be chalked up to waning demand on a global scale. Diesel is primarily used for machinery and home heating while petrol is the favoured fuel for powering cars.
With the Northern Hemisphere approaching summer months there is generally a slowdown in economic activity as people are enjoying the warm weather, combined with a reduced need for home heating.
This has seen the basic fuel price of diesel drop from around US$1.88/barrel to US$1.81/barrel.
The following table shows how the official fuel price changes for May will reflect at the pump:
| Fuel type | Gauteng | Coastal |
|---|---|---|
| Petrol 93 | R25.15 | R24.36 |
| Petrol 95 | R25.49 | R24.70 |
| Diesel 0.05% | R22.15 | R21.36 |
| Diesel 0.005% | R22.24 | R21.48 |
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