The Department of Mineral Resources and Energy has published the official fuel price changes for the new month which are taking effect tomorrow, 3 May.
Petrol prices are rising once more by 37 cents a litre, smashing the R23 barrier for the first time in 2023, whereas diesel prices are dropping up to a maximum of 74 cents a litre.
This is a welcome development when compared to last week’s projections which anticipated a rise of 56c/litre for petrol and a fall of only 57c/litre for diesel.
According to the DMRE, the official fuel price changes taking effect in May are as follows:
- Petrol 93 – Increase of 37 cents a litre
- Petrol 95 – Increase of 37 cents a litre
- Diesel 0.05% – Decrease of 74 cents a litre
- Diesel 0.005% – Decrease of 48 cents a litre
These adjustments take into account fluctuations in the average international product prices, the rand/US dollar exchange rate, as well as a decrease of 17.54c/litre to the Slate Levy.
Moreover, the Minister of Finance in his February Budget Speech announced that an increase of 1.0c/litre will be made to the general fuel levy (carbon levy), seeing it rise to R3.96/litre and R3.82/litre in the price structure of petrol and diesel, respectively.
An additional 1.0c/litre will also be added to the structures of petrol and diesel to “allow the industry to recoup the levy payment for April 2023,” said the minister. This additional 1.0c/l will be removed on 7 June 2023.
Economic factors affecting South African fuel prices
The increase in petrol prices comes off the back of a rise in the average international cost during April, contributing 52c/litre to this fuel type in May.
Diesel, on the other hand, enjoyed a downtrend in international pricing during the same period resulting in a cut of between 31 and 58 cents depending on the grade.
The rand/US dollar exchange rate also performed favourably, leading to a lower contribution to the basic fuel prices.
For the period 31 March to 25 April, the local currency traded at an average of 18.1331/dollar, compared to 18.3045/dollar during the previous period.
As a result, the positive development shaved 12.25c/litre from the prices of petrol and 11.52c/litre from diesel.
The table below shows how May’s fuel price adjustments will reflect at the pump:
| Fuel type | Inland | Coastal |
|---|---|---|
| Petrol 93 | R23.01 | R22.29 |
| Petrol 95 | R23.34 | R22.62 |
| Diesel 0.05% (wholesale) | R20.15 | R19.42 |
| Diesel 0.005% (wholesale) | R20.49 | R19.78 |
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