Fuel prices to drop due to strengthening rand
Petrol is to decrease 9c and diesel up to 31c, says the Central Energy Fund
After a series of fuel price hikes in recent months, motorists will get some relief in May with lower-priced petrol and diesel.
Both petrol grades (93 and 95) will decrease 9c/l on Wednesday May 5, with the wholesale price of diesel to drop 30c/l for low-sulphur 50ppm and 31c/l for high-sulphur 500ppm, the Central Energy Fund (CEF) has announced.
The wholesale price of illuminating paraffin will be reduced by 23c/l.
The CEF, which adjusts fuel prices on the first Wednesday of every month, attributes the price relief to a strengthened rand, with the local currency improving from R14.89 to the dollar on March 31 to R14.44 on April 29.
The stronger rand was offset by international product prices for petrol and illuminating paraffin increasing during the period under review, preventing further price relief at the pumps, while the international price of diesel decreased during the period under review.
In April, petrol reached a record high of R17.32/l for 95 unleaded inland, surpassing the previous record of R17.08 set in late 2018, while motorists were also hit with a 65c hike to the wholesale price of diesel.
The increases included the respective 16c/l and 11c/l fuel and Road Accident Fund (RAF) levies on petrol and diesel, announced by finance minister Tito Mboweni in February.
In announcing fuel price relief for motorists in May, the Automobile Association (AA) said: “The exchange rate has continued its pleasing strengthening trend against the dollar. International petroleum prices, which increased slightly in the first two weeks of April, have held steady since.
“As we head into winter, South Africans who use paraffin for lighting, cooking, and heating especially will no doubt be glad at this news.”
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