PHUTI MOSOMANE
GREAT news for drivers! The Department of Mineral Resources and Energy has announced fuel price adjustments for April.
On Tuesday, Minister Gwede Mantashe disclosed that the new fuel prices, which take into account both local and international factors, will come into effect starting on April 5th, 2023.
The adjustments are as follows:
* 93 Petrol (93 ULP & LRP): One cent per litre (1.00 c/l) decrease.
* Petrol (95 ULP & LRP): Two cents per litre (2.00 c/l) increase.
* Diesel (0.05% sulphur): Seventy three point five eight cents per litre (73.58 c/l) decrease.
* Diesel (0.005% sulphur): Seventy four point five eight cents per litre (74.58 c/l) decrease.
* Illuminating Paraffin (wholesale): One hundred and twenty-four point nine cents per litre (124.90 c/l) decrease.
* SMNRP for IP: Two hundred and one cents per litre (201.00 c/l) decrease.
* Maximum LPGas Retail Price: Ninety-two cents per kilogram (92.00 c/kg) decrease.
The fuel prices schedule for the different zones were published on Tuesday ahead of the Easter weekend.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
International factors taken into considerations include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, like shipping costs.
The main reasons for the fuel price adjustments are due to the fact the average Brent Crude oil price decreased from 82.14 US Dollars (USD) to 79.24 USD during the period under review.
The department said there wre a lot of volatility in the market this period.
In this case, the main contributing factors are the international Silicon Valley and Credit Suisse Banks failures.
This caused uncertainty in the markets and a shift from crude oil to Gold and other precious metals which resulted in a decrease of crude oil prices.
On the other hand, the average international product prices of petrol decreased following the lower brent crude oil prices during the period under review.
The movement in product prices has led to a lower contribution to the Basic Fuel Price of petrol 93 Octane by 40.68 c/l and 95 Octane by 39.45 cents per litre (c/l), diesel 500 ppm by 116.57 (c/l) and 50ppm by 117.46 (c/l) as well as illuminating paraffin by 177.24 c/l.
In his Budget Speech on the 22nd of February 2023, Finance Minister Enoch Godongwana announced that the Fuel Levy and Road Accident Fund (RAF) Levy on both petrol and diesel will remain the same at 394.00 c/l and 218 c/l respectively, with effect from the 5th of April 2023.
This is for the second year in a row, to cushion motorists from high fuel prices.
In line with the Working Rules to determine the Basic Fuels Prices (BFP), the 95 Octane (unleaded) grade is the price-marker grade and the BFP-differential between 95 and 93 Octanes is adjusted on the first Wednesday of each quarter.
The BFP Octane differential has changed during the previous quarter and therefore the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone with effect from the 5th of April 2023.
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