Petrol price increases as diesel price falls
The prices of petrol increased more significantly than the prices of diesel due to higher demand for petrol in USA and Europe.
THE Department of Energy has announced the fuel price adjustments for May, effective from Wednesday, 4 May.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
According to the Department of Energy, “International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.”
The main reasons for the fuel price adjustments in May are: the average increase in the prices of petroleum products in the international markets (about 40c per litre for petrol and 20c per litre for diesel), and the strengthening of the Rand against the US Dollar during the period under review, which cushioned the price adjustments by over 25c.
“The prices of petrol increased more significantly than the prices of diesel due to higher demand for petrol in USA and Europe as they move towards their summer season,” said a statement by the Department of Energy.
Based on current local and international factors, the fuel prices for May 2016 will be adjusted as follows:
1. Diesel (0.05% sulphur) will decrease by 1c per litre
2. Diesel (0.005% sulphur) will decrease by 2c per litre
3. Petrol 95 and 93-octane (both ULP and LRP) will increase by 12c per litre.
4. Illuminating paraffin (SMNRP) will decrease by 9c per litre
5. Liquefied petroleum gas (LPG) will decrease by 5c per kilogram
In other fuel pricing zones, the prices will be different due to the adjustment to the transportation costs.
