The Department of Mineral Resources and Energy has released the latest official fuel price adjustments, set to take effect on Wednesday, 1 May 2024. The announcement comes amid a mixed landscape for fuel recoveries in South Africa, with petrol witnessing an under-recovery while diesel shows an over-recovery.
According to the department’s statement, petrol prices are slated to increase by 37 cents per litre in May, while diesel prices will see a relief of 30 to 36 cents per litre. Illuminating paraffin prices are also expected to decrease by 19 cents per litre, while LPGAS prices will see a substantial decline of 46 cents per kilogram.
The adjustments, outlined in the table below, reflect the changes in fuel prices:
| Fuel | Change |
|---|---|
| Petrol 93 | Increase of 37 cents per litre |
| Petrol 95 | Increase of 37 cents per litre |
| Diesel 0.05% (wholesale) | Decrease of 30 cents per litre |
| Diesel 0.005% (wholesale) | Decrease of 36 cents per litre |
| Illuminating Paraffin | Decrease of 19 cents per litre |
| LPGAS | Decrease of 46 cents per kg |
The department highlighted that the average international product prices for petrol increased during the review period, while diesel and illuminating paraffin prices decreased. Additionally, the Rand depreciated against the US Dollar during the same period, leading to a higher contribution to the Basic Fuel Prices on petrol, diesel, and illuminating paraffin.
The combined cumulative petrol and diesel Slate balances at the end of March 2024 amounted to a negative balance of R 2.735 billion. Following the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 21.92 c/l (no change) has been implemented into the price structures.
The effect of these adjustments on pump prices, although reflecting wholesale prices for diesel, will differ for consumers. The changes are outlined below for both inland and coastal regions:
Inland:
| Fuel | April Official | May Official |
|---|---|---|
| 93 Petrol | R24.78 | R25.15 |
| 95 Petrol | R25.12 | R25.49 |
| Diesel 0.05% (wholesale) | R22.45 | R22.15 |
| Diesel 0.005% (wholesale) | R22.60 | R22.24 |
| Illuminating Paraffin | R16.19 | R16.00 |
| LPGAS (per kg) | R38.12 | R37.66 |
Coastal:
| Fuel | April Official | May Official |
|---|---|---|
| 93 Petrol | R23.99 | R24.36 |
| 95 Petrol | R24.33 | R24.70 |
| Diesel 0.05% (wholesale) | R21.66 | R21.36 |
| Diesel 0.005% (wholesale) | R21.84 | R21.48 |
| Illuminating Paraffin | R15.19 | R15.00 |
| LPGAS (per kg) | R35.16 | R34.70 |
The department’s announcement comes at a time of continued fluctuations in fuel prices globally, influenced by factors such as geopolitical tensions, supply and demand dynamics, and currency exchange rates. These fluctuations impact not only South Africa but also economies worldwide, posing challenges for consumers and businesses alike.
While the relief in diesel prices may offer some respite for industries reliant on transportation, the increase in petrol prices could potentially drive up the cost of living for consumers, affecting household budgets already strained by inflationary pressures.
Furthermore, the ongoing volatility in international markets underscores the importance of strategic energy planning and diversification efforts at the national level. South Africa, like many other countries, remains vulnerable to external shocks in the energy sector, highlighting the need for robust policies to mitigate risks and ensure energy security in the long term.
As consumers brace for the impact of the latest fuel price adjustments, stakeholders across various sectors will closely monitor developments in the energy market, seeking ways to navigate challenges and capitalize on opportunities in an increasingly complex and interconnected global landscape.
In conclusion, the May fuel price adjustments announced by the Department of Mineral Resources and Energy reflect the ongoing dynamics shaping the energy sector in South Africa and underline the need for proactive measures to address emerging challenges and promote sustainable growth and development.
