DMRE announces 12c decrease in petrol while diesel sees a 98c increase.
By Lehlohonolo Lehana.
The Department of Energy has published the fuel price adjustments for May 2022, showing a slight decline for petrol, while diesel vehicle owners in South Africa are not so lucky.
The fuel price adjustments take into account the emergency interventions announced by National Treasury in cooperation with the energy department whereby the General Fuel Levy will be reduced by R1.50 until 31 May 2022.
The new prices take effect on Wednesday, 4 May 2022.
Taking these factors into consideration, the changes for May are as follows:
|Petrol 95||Decrease of 12 cents per litre||Decrease of 15 cents per litre|
|Petrol 93||Decrease of 12 cents per litre||Decrease of 15 cents per litre|
|Diesel 0.05%||Increase of 98 cents per litre||Increase of 94 cents per litre|
|Diesel 0.05%||Increase of 92 cents per litre||Increase of 88 cents per litre|
|Illuminating Paraffin||Increase of 80 cents per litre||Increase of 82 cents per litre|
According to the department, the main drivers behind the price changes include the rand/dollar exchange rate as well as fluctuating oil prices. No slate levy changes were made for the month.
The average brent crude oil price decreased from $109.37 to $104.78 during the period under review. The main cause behind the lower price includes Covid-19 restrictions in China, which is a huge importer of crude oil. This has led to reduced demand for crude oil.
Furthermore, the US announced the release of crude oil strategic stocks to curb crude oil price increases. 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, the department said.
The Russian invasion of Ukraine also remains a significant contributing factor, it said.
Looking at currencies, the rand appreciated, on average, against the US dollar (from R15.02 to R14.90 per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 10.18 c/l, 11.96 c/l and 11.57 cents per litre, respectively.