Fuel price shock: What South African motorists need to know
South Africans will be hit with significant petrol and diesel price increases once again in May.
Image: Tumi Pakkies / Independent Newspapers
Motorists will face another round of fuel price increases from Wednesday, May 6.
Month-end data from the Central Energy Fund shows under-recoveries of R1.73 for 93 Unleaded petrol and R2.04 for 95 Unleaded, resulting in an average petrol increase of R1.88 per litre.
Diesel prices are expected to rise by R4.03 per litre, following the government's announcement to extend temporary fuel tax relief measures, which will add a further 93 cents for diesel.
These predictions are based on unaudited data, and factors like the Slate Levy, which compensates fuel companies for previous price fluctuations, could lead to even higher prices. The Department of Mineral and Petroleum Resources will announce the official fuel price adjustments for May early this week.
Should the above forecasts materialise, motorists will be paying in the region of R24.41 for a litre of 95 Unleaded petrol at the coast and R25.24 inland, where 93 Unleaded will cost in the region of R25.13. The wholesale price of 50ppm diesel is expected to rise to about R29.38 at the coast and R30.14 in Gauteng, with the wholesale margin adding a further R2.50 to R3, depending on the outlet.
This will be a new price record for diesel. However, the petrol price remains below July 2022’s peak of R26.09 per litre, following Russia’s invasion of Ukraine. That price dropped to R21.71 within three months, however, as international oil prices receded.
Bigger fuel price crisis looms in June and July
May’s fuel price increases are almost solely the result of rising international product prices, with the rand having a negligible effect of about three to five cents on the pricing structure.
South Africans could be in for even bigger price shocks in June, should there not be a resolution to the war in the Middle East.
May’s fuel prices are based on Brent crude oil prices averaging below $100 per barrel during the most recent review period. However, stalled US-Iran peace talks have sent the black gold trading between $113 and $126 in the past week.
A further blow to consumers will be the winding down of South Africa’s temporary fuel tax reprieve, which is set to be halved to R1.50 per litre for petrol and R1.96 for diesel during the month of June, before falling away completely in July.
National Treasury and the Department of Mineral and Petroleum Resources announced last week that the R3 fuel tax relief would remain in place for petrol during May, while diesel would see a further 93c reprieve for the month.
However, from July onwards, motorists will pay the full General Fuel Levy amounts of R4.10 on petrol and R3.93 for diesel.