Petrol Prices in South Africa Set to Surge in May 2024
South Africa’s Minister of Mineral Resources and Energy, Mr. Gwede Mantashe, has announced the adjustment of Petrol Prices in South Africa based on local and international factors, effective from May 1, 2024.
The Fuel price adjustments are primarily influenced by crude oil prices, international petroleum product prices, the Rand/US Dollar exchange rate, and the implementation of the Slate Levy.
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 prices 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 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
As 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 1st of May 2024.
Based on current local and international factors, the fuel prices for May 2024 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; and
The fuel prices schedule for the different zones will be published on Tuesday, the 30th of April 2024.
Enquiries: mediadesk@dmre.gov.za
Mr Natie Shabangu – natie.shabangu@dmre.gov.za / 073 852 1922
Mr Johannes Mokobane – johannes.mokobane@dmre.gov.za / 082 766 3674
Mr Ernest Mulibana – ernest.mulibana@dmre.gov.za / 082
Source: www.gov.za
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