Consumers of diesel, paraffin and gas will breathe a little easier following price decreases in all fuels and slight changes in the prices of petrol.
This after the Department of Mineral Resources and Energy (DMRE) released the updated prices for fuel, gas and paraffin for the month of April.
The new prices are as follows:
- 93 grade petrol will decreased by one cent per litre
- 95 Petrol is expected to increase by two cents per litre
- Diesel 0.05% will go down by some 73c
- Diesel 0.005% is expected to also decrease by some 74c
- Wholesale illuminating paraffin will decrease by R1.24
- The price of Single Maximum National Retail price for illuminating paraffin will decrease by R2.01
- The Maximum LP Gas Retail Price will decrease by 92c
“The average international product prices of petrol decreased following the lower brent crude oil prices during the period under review. The movement in product prices has led to a lower contribution to the Basic Fuel Price of petrol 93 Octane by 40c per litre and 95 Octane by 39c per litre, diesel 500 ppm by R1.16 per litre and 50ppm by R1.17 per litre as well as illuminating paraffin by R1.77 per litre.
“The Rand depreciated, on average, against the US Dollar from 17.74 to 18.03 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 petrol, diesel and illuminating paraffin by 37c, 39c and 38c per litre, respectively,” the DMRE said.
The department also highlighted that there was “volatility” in the markets over the past month.
The main contributing factors are the international Silicon Valley and Credit Suisse Banks failures - this caused uncertainty in the markets and a shift from crude oil to Gold and other precious metals which resulted in a decrease of crude oil prices – and the interest rate hikes by the US Federal Reserve also contributed to the decrease of crude oil prices on fears of a global economic recession.
The department announced that Minister Gwede Mantashe has “approved the implementation of revised zone differentials into the price structures of petrol, diesel and illuminating paraffin” which will come into effect on Wednesday.
A decrease in the slate levy is also expected.
“The annual adjustments to road transport tariffs applicable in petrol, diesel and [illuminating paraffin] price structures will range from an increase of 40.8c per litre in Gordonia Central Magisterial District Pricing Zone to an increase of 7.8c per litre for petrol and diesel as well as 14.1c per litre for [illuminating paraffin in] Zone 9C-Gauteng.
“As at the end of February 2023, the cumulative slate amounted to a negative balance for petrol and diesel of R 2.43 billion. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, there is a decrease of 4.38 cents per litre in the Slate levy which will be implemented into the price structures of petrol and diesel with effect from [Wednesday]. The slate levy applicable will be 17.54c per litre,” the department said. – SAnews.gov.za