Motorists behind the wheel of diesel vehicles can expect some relief at the pumps this month, as the department of Mineral Resources and Energy, on Tuesday announced a significant drop in the price of diesel.
Most fuel prices will be decreasing, except for petrol 95 in Gauteng, which will see an increase of 2 cents per litre.
The department said diesel 0.05% sulphur will see a 73.58c decrease, 0.005% sulphur will drop by 74.58c a litre, while 93 unleaded petrol will see a 1c decrease.
The fuel prices differ between inland and the coast in South Africa.
The price of 95 petrol will increase to R22.97 per litre from R22.95, with all the changes coming into effect on Wednesday, 5 April.
Inland the price changes are as follows: 93 petrol dropping from R22.65 to R22.64, 95 petrol moving from R22.95 to R22.97, 0.05% diesel (wholesale) moving from R21.63to R20.89, 0.005% diesel (wholesale) moving from R21.72 to R20.97 and illuminating paraffin moving from R15.97, R14.72 and LPGAS (p/kg) moving from R38.68 to R37.76.
On the coast, the price changes are as follows: 93 Petrol dropping from R22.00 to R21.92, 95 petrol from R22.30 to R22.25, 0.05% diesel (wholesale) moving from R20.97 to R20.16, 0.005% diesel (wholesale) moving from R21.08 to R20.26, illuminating paraffin moving from R15.18 to R13.80, and LPGAS (p/kg) moving from R36.10 to R35.17.
South Africa’s fuel prices are adjusted on a monthly basis, 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, such as shipping.
The department said that the main factors that contributed to the decrease in fuel prices this month was that the average Brent crude oil price decreased from $82.14 to $79.24 during the period under review. The average international product prices of petrol decreased as well, following the lower Brent crude oil prices. The rand depreciated, on average, against the US Dollar (from 17.74 to 18.03 rand per USD) during the period under review.
The Fuel Levy and Road Accident Fund (RAF) Levy on both petrol and diesel will remain the same at 394.00 c/l and 218 c/l respectively, as announced by the country’s Finance Minister during his budget speech, in an effort to cushion the impact of higher fuel prices on motorists.
Frank Blackmore, Lead Economist at KPMG, said fuel prices for April will remain fairly similar to what they were in March.
Blackmore said, “The real benefit will come through for diesel drivers, while the price changes for petrol, inland and on the coast is not much different. Even though the petrol price did not change much, it will still be a welcome relief to motorists as we head into the Easter holiday period, as many people will be looking to travel. It will also feed into lowering the inflation rate in general but may be short-lived, given the fact that OPEC+ decided to cut their production and we saw an increase in the petrol price globally.”
Abigail Moyo, spokesperson of the trade union UASA said that the price drop in diesel and illuminating paraffin was good news, but petrol-pumped vehicle consumers were less fortunate.
Moyo said, “Motorists travelling to different destinations over the Easter holidays will experience little relief as they fill up for longer distances than usual. UASA urges its members and fellow South Africans to be smart about their household finances and curb spending on unnecessary items over Easter. We encourage everyone to stay safe and vigilant, drive safely and spend wisely.”
Ester Ochse, Product Head at FNB Integrated Advice, said that consumers would feel the impact of fuel prices when shopping for basic grocery essentials.
Ochse told Business Report, “The margins on diesel is slightly better than that of the petrol pricing. With the fuel price going up or down, it has a direct impact on transport costs and disposable income immediately. It is a time when the consumer needs to go back to basics, has a look at where their spending is going and see where they can potentially rationalise their spending to see how they can make ends meet.”
BUSINESS REPORT