The price of petrol in SA is expected to drop by a maximum of 15 cents per litre in May, but the bad news is that the price of diesel may rise to 94 cents per liter. This is according to data released by the Central Energy Fund (CEF)
BusinessTech reported that the expected price adjustments for all types of fuel in South Africa will be as follows in May:
- Petrol 93 – Drops by 14 cents per litre
- Petrol 95 – Drops by 15 cents per litre
- Diesel 0.05% – Increases by 94 cents per litre
- Diesel 0.005% – Increases by 89 cents per litre
- Illuminating paraffin – Increase by 82 cents per litre
However, it must be noted that the official fuel price adjustments take into account the entire April’s data, including slate levy and retail margin changes that are only determined at the end of the month. Therefore, the final fuel price changes that are taking effect on 4 May could look significantly different.
Factors affecting South African fuel prices
South African fuel prices are affected by two main components, the rand/US dollar exchange rate and changes in international petroleum prices.
International petroleum prices are highly sensitive to oil prices, which rose sharply in 2022 and were partly responsible for the massive spikes in local fuel prices. Similarly, the rand gained strength throughout the year off the back of rising international commodity prices, but most of the positive effects have since been overturned with the domestic currency fast approaching the R16/dollar mark, after hovering around R14.60/dollar at the start of April.
Photo: Internet
