Petrol prices will be lowered on Wednesday, while diesel will get pricier, the department of mineral resources and energy announced on Tuesday.The petrol price (both 93 and 95) will be cut by 12c a litre, while diesel will be hiked by 98c (0.05% sulphur) and 92c (0.005% sulphur).Paraffin prices will increase by 79.60c/l.Local fuel prices are determined by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars. Petrol and diesel prices have surged by more than a third over the past year.The average Brent crude oil price fell from an average of $109.37 a barrel in March to $104.78 in April, thanks in part to new Covid-19 lockdowns in China, which reduced demand for crude oil. Also, the US released some of its oil strategic stocks to curb price increase.“The impact of these two factors was not that significant as the average price of crude oil only decreased slightly during the period under review and is still high,” said the department.The invasion of Ukraine has triggered an oil price shock. Russia is the world’s third-largest producer of crude oil, and it has been locked out of western markets, pushing oil prices higher. Local fuel prices continue to benefit from a temporary cut of R1.50 in the general fuel levy for April and May. The total fuel levy will remain R2.44 a litre for petrol and R2.30 for diesel in May.
