Petrol is set to become more expensive in May, but diesel drivers can look forward to a decent reprieve.
PETROL is set to become more expensive in May, but diesel drivers can look forward to a decent reprieve.
The Department of Mineral Resources and Energy announced on Tuesday that the price of both grades of petrol would increase by 37 cents per litre from Wednesday, May 3.
However, 500ppm diesel is set to come down by 73 cents per litre, while the cleaner 50ppm diesel will see a smaller decrease of 47 cents. Illuminating paraffin is set to come down by 33 c/l.
Following this week’s price adjustment, a litre of 95 Unleaded will now retail for R22.62 at the coast and R23.34 in the inland regions, where the less expensive 93 Unleaded will now cost R23.01.
The wholesale price of 500ppm diesel will be reduced to R19.43 at the coast and R20.15 inland, while 50ppm is listed at R19.79 and R20.50 respectively. However, the retail prices, which vary between outlets because diesel is unregulated, will be somewhat higher than that.
The price adjustments for May 2023 are largely driven by higher international petrol prices and lower diesel costs during the month of April.
The rand actually counted in our favour, having appreciated from an average of R18.30 to the US dollar during the previous month to R18.13 during the review period between 31 March and 25 April.
The Slate Levy, which compensates fuel companies for fluctuations that take place within the preceding month, sees a decrease of 17.54 cents per litre, softening the petrol price blow and adding to the diesel price relief.
As diesel is a fuel used by the transport industry, these reductions could also soften general inflation in the coming months.
“Diesel is a big input cost in major sectors such as agriculture, mining and manufacturing and an increase here often contributes to increased prices of basic commodities,” the Automobile Association said.
“The current increase in the consumer price index (CPI) to 7.1% in March and food inflation hitting a 14-year high of 14.4%, plus an increase in diesel prices would have resulted in very unfavourable conditions for consumers,” the association added.
