CONFIRMED fuel price increase for MAY

CONFIRMED fuel price increase for MAY

The fuel price increase for May was confirmed by the Minister of Mineral Resources and Energy, Gwede Mantashe, on Tuesday.

THE CONFIRMED FUEL PRICE INCREASE WILL COME INTO EFFECT TOMORROW

According to a media statement by the minister, the adjustment of fuel prices is based on current local and international factors.

The price adjustments will be in effect from the 1st of May 2024.

“South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs.”

Mantashe said.

HERE IS ALL THE FUEL PRICE ADJUSTMENTS FOR MAY:

Based on current local and international factors, the fuel prices for May will be adjusted as follows:

• Petrol (93 ULP & LRP): thirty-seven cent per litre (37.00 c/l) increase. 
• Petrol (95 ULP & LRP): thirty-seven cents per litre (37.00 c/l) increase. 
• Diesel (0.05% sulphur): thirty cents per litre (30.00 c/l) decrease.  
• Diesel (0.005% sulphur): thirty-six cents per litre (36.00 c/l) decrease. 
• Illuminating Paraffin (wholesale): nineteen cents per litre (19.00 c/l) decrease. 
• SMNRP for IP: twenty-five cents per litre (25.00 c/l) decrease. 
• Maximum LPGas Retail Price: thirty-seven cents per kilogram (46.00 c/kg) decrease.  

HERE ARE THE FOUR MAIN REASONS FOR THE FUEL PRICE ADJUSTMENTS

Gwede also said the four main reasons for the fuel price adjustments are due to the following reasons:

1. Crude oil prices – 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. 
2. International petroleum product prices: 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. 
3. Rand/US Dollar exchange rate – 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 on all products.   
4. Implementation of the Slate Levy – 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 1 of May.

HOW CAN YOU SAVE FUEL? 

MasterDrive CEO Eugene Herbert said basic driving adjustments could help with petrol and diesel consumption:

• Anticipate changes to traffic conditions and minimise unnecessary braking and acceleration.
• Reducing speed by 20km/h can reduce fuel consumption by 20%.
• Plan your route and use traffic apps and alerts to avoid traffic jams and congestion.
• Keep your RPMs around 3 000 as it can also reduce your consumption by 20%.
• Regular maintenance improves fuel efficiency.
• Minimum use of the aircon.