Motorists who make use of petrol will be forking out more at the pumps this May, while there is some reprieve for diesel users.
The Department of Mineral Resources and Energy announced the fuel price adjustments which will come into effect on Wednesday, May 1.
The department said both grades of petrol would increase by 37 cents a litre, and diesel by 30 cents, for 500ppm, and 36 cents for lower-sulphur 50ppm.
This means that a litre of 93 Unleaded petrol will cost R25.15 in the inland regions and 95 Unleaded R25.49.
At coastal regions, 95 unleaded will cost R24.70.
The wholesale cost of diesel will decrease to R22.24 a litre in Gauteng and R21.48 in coastal regions.
Higher crude oil prices and a weaker rand contributed to the price adjustments, the department said.
Koketso Mano, an FNB senior economist, told “Business Report” that the petrol price was below the peak prices South Africans experienced in July 2022.
Mano said: “There was a rise in average international product prices as well as the weaker rand during this period which is why the petrol price is increasing. On a more positive note, we are seeing a decrease in diesel prices which will have an impact on input costs, as well as transport costs across the country.
“Looking at the oil market, we expect it to be finely balanced this year. On the risk side, heightened geo-political tensions continue, and supply conditions could become adverse as we have seen in the Middle East. Fortunately, Iran and Israel showed restraint in the recent conflict, and the recent push towards peace talks could further ease fears of conflict.
“The rand should continue to experience pressure from the hawkish US Federal Reserve (Fed) and leading up to the near term elections. Once the risk potentially subsides from the elections and we see a cut from the fed, the rand is likely to recover from what we think is a harshly undervalued position.”
BUSINESS REPORT