Price pain at the pumps: Diesel dips, but petrol to soar in May

Mid-month data from the Central Energy Fund (CEF) shows there is currently an under-recovery in petrol prices, pointing to an increase next month of between 76 and 84 cents per litre.

Diesel drivers are in line for yet another cut to fuel prices, with data pointing to an over-recovery of between 23 and 47 cents per litre.

Fuel price adjustments are basically determined by two main factors the Rand/Dollar exchange and global oil prices. Given the volatility of our currency and oil prices during the past month, May’s fuel price is not an easy prediction.

South Africa’s Rand remains on the back foot, trading above R18 to the Dollar.

ALSO READ: New BEE bill to face legal hurdles

May fuel price: Expected changes for petrol, diesel and paraffin

• Petrol 93: increase of 84c/litre
• Petrol 95: increase of 76c/litre
• Diesel 0.05%: decrease 42c/litre
• Diesel 0.005%: decrease of 25c/litre
• Illuminating paraffin: decrease of 47c/litre

The Department of Energy (DOE) has previously stressed that the daily CEF snapshots are not predictive and do not cover other potential changes like slate levy adjustments or retail margin changes, which are determined by the department at the end of the month.

ALSO READ: You won’t see John Cena in a Lambo often – he prefers a Honda

No April fuel’s joke: Decent diesel decrease, marginal for petrol

The official fuel price adjustments which came into effect from 5 April 2023 saw the diesel prices decrease by 73.58c/litre, and 93 unleaded petrol by 1c/litre.

The price of 95 petrol increased to R22.97 per litre from R22.95.

Diesel Levy Refund

In his Budget Speech on 22 February, Finance Minister Enoch Godongwana also announced government will extend a diesel fuel levy refund to food manufacturers for a period of two years. This will be effective from 1 April 2023 to 31 March 2025.

To ease the impact of the electricity crisis on food prices, the refund on the Road Accident Fund levy for diesel used in the manufacturing process, such as for generators, will be extended to manufacturers of foodstuffs.

ALSO READ: Economic activity, manufacturing output continue to decline