Motorists to fork out more for petrol and less for diesel from Wednesday

South African motorists will have to dig deep in their pockets with a hike in the petrol and diesel prices.

The Department of Mineral Resources and Energy (DMRE) has announced the price of both 93 and 95 octane petrol will increase from Wednesday, 1 May 2024.

Petrol

Both 93 and 95 octane petrol will increase by 37c per litre.

Diesel

The price of diesel (0.05% sulphur) decreases by 30c per litre, while diesel with 0.005% sulphur goes down by 36c per litre.

Paraffin and gas

Meanwhile, illuminating paraffin will cost 19 cents per litre less, while the price of LPGas decreases by 46c per kilogramme.

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Reason for petrol increase

The DMRE said several international and local factors contributed to the increase in petrol and diesel prices.

Brent Crude price

“The average Brent crude oil price increased from 84.22 US dollars (USD) to 88.10 USD per barrel during the period under review.

“There was a lot of volatility in the market during this period. The main contributing factor is the growing geopolitical tensions in the Middle East and sustained production cuts by OPEC+ countries,” it said.

International petroleum prices

It also said the average international product price of petrol increased following the higher Brent crude oil prices and anticipated demand for the driving season during the period under review.

“The diesel, illuminating paraffin and LPGas prices decreased on average due to seasonal changes and reduced demand in the Northern Hemispheres as they move away from their winter season.

“The movement in product prices has led to a lower contribution to the Basic Fuel Price of petrol by 34.41 c/l and higher contributions to the BFP of diesel by 39.33 c/l and illuminating paraffin by 22.35 cents per litre,” the DMRE explained.

Rand/US Dollar

The DMRE said the Rand depreciated, on average, against the US Dollar (from 18.04 to 18.90 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the basic fuel prices of all products by about 2.50 cents per litre for all products.

Slate levy

The DMRE said at the end of March 2024, the cumulative slate amounted to a negative balance for petrol and diesel of R 2.73 billion.

‘In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of 21.92 c/l will remain unchanged in the price structures of petrol and diesel with effect from the 1st of May 2024,” the DMRE said.

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