April fuel shock: Petrol, diesel prices announced
The Department of Petroleum and Mineral Resources (DMPR) has announced that petrol and diesel prices will increase by between R3.06 and R7.51 from midnight on 1 April.
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The increase comes amid government efforts to cushion the blow for consumers through the introduction of a temporary R3 decrease in the general fuel levy.
Prices were widely expected to increase steeply as conflict in the Middle East has triggered global exponential increases in the price of Brent Crude Oil.
The adjusted prices for April are:
- Petrol 93 (ULP and LRP): R 3.06 per litre increase.
- Petrol 95 (ULP and LRP): R 3.06 per litre increase.
- Diesel (0.05% sulphur): R7.37 per litre increase.
- Diesel (0.005% sulphur): R7.51 per litre increase.
- Illuminating Paraffin (wholesale): R11.67 per litre increase.
- Single Maximum National Retail Price for Illuminating Paraffin: R15.60 per litre increase.
- Maximum Retail Price of LPGas: R1.08 per kg) increase and R1.23 per kg increase in the Western Cape.
“The average Brent Crude oil price increased from US$69.08 to US$93.67 during the period under review. This is due to the continued tension between the US and Iran, which has affected crude oil supply, especially through the Strait of Hormuz.
“The average international product prices followed the increasing trend of crude oil price. These factors led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by R5.26 per litre, R9.49 per litre and R10.80 per litre, respectively.
“The prices of Propane and Butane remained the same during the period under review due to lower demand because of the change in season to warmer weather in the Northern Hemisphere. However, shipping costs were higher due to the conflict in the Middle East,” the department explained.
Furthermore, the rand depreciated against the US Dollar during the period under review, weakening from R16.00 to R16.64 rand per USD.
“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin by 56.18 c/l, 78.07 c/l and 83.21 c/l respectively,” the department continued.
The temporary reduction of the general fuel levy will take effect in April – bringing relief by some R3 to the price at the pumps.