Petrol price indicators from the Department of Energy show an insignificant downward shift in 93 and 95 Unleaded, while much-needed relief is expected for diesel users from Wednesday, 5 April 2023.
Petrol price: Here’s how much a litre may cost from Wednesday, 5 April 2023
From Wednesday, 93 and 95 Unleaded petrol is set to decrease by a cent and two cents, respectively, while users of 0.05% and 0.005% diesel will see a significant slash ranging between 73.58c and 74.58c per litre.
In a statement, department spokesperson Robert Maake indicated that this period’s petrol price fluctuations were impacted largely impacted by recent spikes in international crude oil costs, as well as the performance of the South African Rand against the US Dollar.
“The average Brent Crude oil price decreased from 82.14 US dollars to 79.24 USD during the period under review. There was a lot of volatility in the market this period. 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,” Maake explained.
Also, the US Federal Reserve’s decision to hike interest rates for the ninth consecutive occasion had an adverse impact on petrol prices in South Africa.
“Interest rate hikes by the US Federal Reserve also contributed to the decrease of crude oil prices on fears of a global economic recession,” Maake explained.
Moreover, the Energy Department implement a 4.2c p/l increase in the slate levy from Wednesday, 1 March 2023. This comes after “the combined cumulative petrol and diesel Slate balances at the end of January 2023 amounted to a negative balance of R2.71 billion.”
Here is a look at the estimated petrol price changes expected on Wednesday, 5 April 2023.
PLEASE NOTE: The petrol price adjustments listed below are directly quoted from the Department of Energy’s monthly press release. Despite our best efforts to ensure accurate reporting, it is still the sole responsibility of the reader to double-check petrol prices. Swisher Post, its parent company, partners and affiliates shall not be held liable for any consequence that arises from the journalistic duties performed in sharing this content.
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R22.93 | -R0.02 |
| Petrol 93 | R22.64 | -R0.01 |
| Diesel 0.05% | R20.88 | -R0.73 |
| Diesel 0.005% | R20.96 | -R0.74 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R22.28 | -R0.02 |
| Petrol 93 | R21.99 | -R0.01 |
| Diesel 0.05% | R20,24 | -R0.73 |
| Diesel 0.005% | R20.33 | -R0.74 |
What goes into the final retail price of fuel in South Africa?
Determining the final retail price of petrol in South Africa relies heavily on the rand’s performance in currency markets and oil price movements. Using this information, the CEF can formulate basic fuel price (BFP) estimates which, in essence, offer South African importers a snapshot into the cost of buying petrol from an international refinery, transporting the product and ensuring it against possible losses at sea and on land.
However, before the retail price of petrol is finalised at petrol stations, several additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and injecting it into IP to curtail the mixing of IP and diesel)
- General Fuel levy (tax levied by the government)
- Slate levy (to finance the cumulative under-recovery of the industry)
- RAF levy (to compensate for people involved in road crashes and accidents)
- Petroleum products levy (reimbursement to the pipeline users for the applicable NERSA tariff on transporting fuel through the pipeline)
Additional costs
- Wholesale margin (markup to the price of a product to account for wholesaling costs)
- Service cost recoveries
- Storage, handling and delivery costs
- Distribution costs
- Dealers margin (commission to the fuel pump dealers for retail operation)
- Zone differential (applicable to inland regions)
- Customs and excise duty
Petrol price adjustments are generally made on the first Wednesday of every month by the Department of Energy.