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Sunday / 14 July 2024
HomeNewsBig petrol price changes confirmed for May

Big petrol price changes confirmed for May

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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