South Africans will be hit with significant petrol and diesel price increases once again in May, with a predicted 5% rise in petrol costs and a substantial hike in diesel prices.
The temporary tax reprieve that came into effect from April 1, reducing the General Fuel Levy by R3 per litre, has been extended into May, but its impact may be offset by volatile international oil prices caused by the war in the Middle East, as explained on the Department of Mineral Resources and Energy website.
Petrol Price Increase
According to late-month data from the Central Energy Fund, an under-recovery of R1.76 for 93 Unleaded petrol and R2.09 for 95 Unleaded has been reported. Should current price trends persist, South Africans can expect a petrol price increase of around R1.85 per litre.
The wholesale price of petrol is expected to rise, with 95 Unleaded predicted to sell for around R24.38 at the coast and R25.21 in Gauteng. The cheaper 93 Unleaded is likely to sell for around R25.10.
Diesel Price Increase
The diesel situation is more dire, with a predicted increase of R4.50 in May, despite the diesel tax reprieve being extended by a further 93 cents for next month. The wholesale price of diesel is expected to rise to around R29.82 at the coast and R30.58 in Gauteng.
A list of the expected price increases is as follows:
- Petrol: R1.85 per litre
- Diesel: R4.50 per litre
- 95 Unleaded: R24.38 at the coast, R25.21 in Gauteng
- 93 Unleaded: R25.10
- Diesel: R29.82 at the coast, R30.58 in Gauteng
National Treasury and the Department of Mineral and Petroleum Resources announced that the fuel relief measures would continue for the month of May, but the petrol price relief will be reduced to R1.50 per litre for June, while the diesel tax break will be lowered to R1.96 per litre. The tax relief will be removed completely from the beginning of July, as per the information available on the National Treasury website.
