South Africans To Witness Surge In Petrol Prices In May 2024

South Africans are all set to witness a surge in petrol prices from May onwards as the prices will go up by 37 cents more per liter - for both types of petrol, 93 and 95.

For instance, purchasing 95 petrol in Gauteng, which currently costs R25.12, it will go up to R25.49 from Wednesday. However, some consumers will feel a bit of relief as the prices of diesel, paraffin and LP Gas are set to drop.

The Department of Mineral Resources and Energy (DMRE) announced the changed fuel prices, revealing that both grades of petrol (93 ULP and LRP) and (95 ULP and LRP) will increase by 37 cents. Diesel with 0.05% sulphur will decrease by 30 cents, and diesel with 0.005% sulphur will decrease by 36 cents.

Wholesale illuminating paraffin will see a decrease of 19 cents, while the single maximum national retail price for illuminating paraffin will decrease by 25 cents. Whereas, the maximum retail price of LP Gas will decrease by 46 cents.

"The average Brent crude oil price increased from 84.22 US Dollars (USD) to 88.10 USD per barrel, during the period under review," the department said, SA News reported.

It added, "There was a lot of volatility in the market during this period. The main contributing factor is the growing geopolitical tensions in the Middle East and sustained production cuts by OPEC+ [Organization of the Petroleum Exporting Countries] countries."

The average international prices for petrol went up due to the rise in Brent crude oil prices and expected higher demand for the driving season. However, diesel, illuminating paraffin, and LP Gas prices dropped on average because of seasonal shifts and decreased demand in the Northern Hemisphere as they transition away from winter, the department explained.

"The movement in product prices has led to a lower contribution to the basic fuel price (BFP) of petrol by 34.41 cents a liter and higher contributions to the BFP of diesel by 39.33 cents a liter and illuminating paraffin by 22.35 cents per liter," the DMRE said.

Furthermore, the department noted that the weakening Rand (South African currency) also played a role in the increase in petrol prices, explaining that the Rand lost value against the US Dollar, with the exchange rate shifting from 18.04 to 18.90 Rand per USD compared to the previous period.

This resulted in an increase of about 2.50 cents per liter across all fuel products due to higher contributions to the basic fuel prices, as per the department.