(Photo: Christine Oelofse/Maroela Media)
Diesel will become even more expensive on Wednesday; more than R6 per liter more expensive.
The Department of Mineral Resources and Energy announced the new fuel prices on Monday and, as expected, the price of diesel rose sharply again.
The increases will take effect at midnight on Wednesday.
The price of diesel (0.05% and 0.005% sulfur content) will then shoot up by R6.19 per litre. The price of petrol is also rising, but at least not as sharply as diesel. The department says the price of 93-octane and 95-octane petrol will rise by R3.27/litre on Wednesday.
The price of paraffin rises by R4.22 per liter and the price of liquefied gas by R5.07 per kg.
(Graphics: Pieter Cloete/Maroela Media)
That’s why
South Africa’s fuel prices are adjusted monthly.
The prices are affected every month by international and local factors. International factors include the fact that South Africa imports crude oil and already processed products at a price that is set at international level, including import costs such as shipping costs.
The department says that the average price of Brent crude rose from $93.67 to $101 during the review period. This is due to the ongoing tension between the US and Iran, the closure of the Strait of Hormuz and damage to other important infrastructure that has affected crude oil supplies.
Average international product prices have followed the rising trend of crude oil prices, explains Gwede Mantashe, Minister of Minerals and Petroleum Resources.
The department says that the prices of middle distillates such as diesel and paraffin have risen more than petrol prices due to higher demand and reduced supply from the Persian Gulf.
Gwede Mantashe, Minister of Minerals and Petroleum Resources. (Photo: Phill Magakoe/AFP)
Compared to the previous month, the rand remained relatively stable against the dollar (from R16.64 to R16.65) during the review period in question compared to the previous one. This resulted in a contribution of less than 1c/litre to the basic fuel price of petrol, diesel and paraffin during the review period.
Due to the ongoing conflict between the USA and Iran which continues to affect fuel prices worldwide, the Minister of Finance in consultation with the Minister of Minerals and Petroleum Resources has announced a further temporary reduction of the general fuel levy which will be implemented in the price structures of petrol and diesel from 6 May to 2 June.
The reduction of R3 per liter in the general fuel levy that was introduced in April will therefore be extended until 2 June.
Enoch Godongwana, Minister of Finance, has proposed, given the large expected increases in the price of diesel, that the temporary relief for diesel be increased by 93 cents to R3.93 per litre, from Wednesday 6 May to Tuesday 2 June.