Petrol to rise R1.43, while diesel gets some relief

South African motorists will face a mixed picture at the pumps from Wednesday, 3 June, as petrol prices increase sharply while diesel and paraffin prices come down.

Read:
Diesel rebate reforms: Treasury removes 80% cap
No further fuel levy relief, as Treasury rebalances books

The June adjustments are:

Petrol 93 (ULP & LRP): 143c/l increase
Petrol 95 (ULP & LRP): 143c/l increase
Diesel 0.05% sulphur: 324.96c/l decrease
Diesel 0.005% sulphur: 261.96c/l decrease
Illuminating paraffin (wholesale): 596c/l decrease

The general fuel levy relief has been reduced by R1.50 per litre for petrol and R1.96/l for diesel.

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National Treasury and the Department of Mineral and Petroleum Resources (DMPR) extended the temporary fuel tax relief in May as tensions between the US, Israel and Iran persisted longer than expected. However, the measure is being wound down from June.

Government first intervened ahead of April’s monthly fuel price adjustment, cutting the general fuel levy by R3/l at the eleventh hour to cushion consumers from the impact of surging oil prices.

Read: Oil set for 19% collapse in May as traders bet on truce renewal

Lower oil prices, stronger rand 

The DMPR said the adjustments reflect a combination of higher crude oil prices, changes in international product prices, a stronger rand, and the partial withdrawal of government’s temporary fuel levy relief.

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According to the department, the average Brent crude oil price increased from $101 a barrel to $104.59 during the review period, driven by continued tension between the US and Iran and closure of the Strait of Hormuz.

However, international petroleum product prices moved lower overall. The department said the prices of middle distillates, such as diesel and paraffin, fell more than petrol prices because of lower seasonal demand as the northern hemisphere moves into summer.

The rand also strengthened modestly against the US dollar during the review period, averaging R16.52/$ compared with R16.65/$ previously, helping to lower the basic fuel price contribution.

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