Consumers of diesel, paraffin and gas will breathe a little easier after price decreases in all fuels and slight changes in petrol prices. The Department of Mineral Resources and Energy (DMRE) released the updated fuel, gas and paraffin prices for April, outlining the new rates as follows:
– 93‑grade petrol will decrease by one cent per litre.
– 95‑grade petrol is expected to increase by two cents per litre.
– Diesel 0.05 % will fall by approximately 73 cents per litre.
– Diesel 0.005 % is also expected to drop by about 74 cents per litre.
– Wholesale illuminating paraffin will decrease by R1.24 per litre.
– The Single Maximum National Retail price for illuminating paraffin will fall by R2.01 per litre.
– The Maximum LP Gas Retail price will decline by 92 cents per litre.
“The average international product prices of petrol decreased following lower Brent crude oil prices during the period under review,” the DMRE explained. “The movement in product prices has led to a lower contribution to the Basic Fuel Price of 93‑octane petrol by 40 cents per litre, 95‑octane by 39 cents per litre, diesel 500 ppm by R1.16 per litre and 50 ppm by R1.17 per litre, as well as illuminating paraffin by R1.77 per litre.”
The Rand depreciated against the US dollar, moving from 17.74 to 18.03 Rand per USD during the same period. This depreciation increased the contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 37 cents, 39 cents and 38 cents per litre, respectively. The department also noted “volatility” in the markets over the past month.
Key factors influencing these changes include the failures of Silicon Valley and Credit Suisse banks, which created market uncertainty and prompted a shift from crude oil to gold and other precious metals, thereby lowering crude oil prices. Additionally, interest‑rate hikes by the US Federal Reserve contributed to the decline in crude oil prices amid fears of a global economic recession.
Minister Gwede Mantashe has approved the implementation of revised zone differentials into the price structures of petrol, diesel and illuminating paraffin, effective Wednesday. A decrease in the slate levy is also expected. The annual adjustments to road‑transport tariffs will range from an increase of 40.8 cents per litre in the Gordonia Central Magisterial District Pricing Zone to an increase of 7.8 cents per litre for petrol and diesel, and 14.1 cents per litre for illuminating paraffin in Zone 9C‑Gauteng.
As of the end of February 2023, the cumulative slate showed a negative balance of R2.43 billion for petrol and diesel. In line with the Self‑Adjusting Slate Levy Mechanism, a reduction of 4.38 cents per litre in the slate levy will be applied to petrol and diesel price structures from Wednesday, resulting in a slate levy of 17.54 cents per litre.
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