Good and bad news for May fuel prices

PETROL is set to become more expensive, but diesel drivers can look forward to a decent reprieve.

The Department of Mineral Resources and Energy announced on Tuesday that the price of both grades of petrol would increase by 37 cents per litre from yesterday.

However, 500ppm diesel is set to come down by 73 cents per litre, while the cleaner 50ppm diesel will see a smaller decrease of 47 cents. Illuminating paraffin will come down by 33 c/l.

Following this week’s price adjustment, a litre of 95 Unleaded will now retail for R22.62 at the coast and R23.34 inland, where the less expensive 93 Unleaded will now cost R23.01.

The wholesale price of 500ppm diesel will be reduced to R19.43 at the coast and R20.15 inland, while 50ppm is listed at R19.79 and R20.50 respectively. However, the retail prices, which vary between outlets because diesel is unregulated, will be somewhat higher than that. The price adjustments for May are largely driven by higher international petrol prices and lower diesel costs during April. The rand actually counted in our favour, having appreciated from an average of R18.30 to the US dollar during the previous month to R18.13 during the review period between March 31and April 25.

The Slate Levy, which compensates fuel companies for fluctuations that take place within the preceding month, sees a decrease of 17.54 cents per litre, softening the petrol price blow and adding to diesel price relief.

As diesel is a fuel used by the transport industry, these reductions could also soften general inflation.