Energy Dept announces petrol and diesel price increase from Wednesday – 6 April

The Energy Department has announced that 93 grade petrol will increase by 28 cents per litre and 95 octane will increase by 36 cents per litre from Wednesday 6 April.

The prices of diesel (0.05% sulphur) increases by R1.52 per litre, Diesel with (0.005% sulphur) increases by R1.68 per litre while illuminating paraffin will increase by R2.66 per litre.

The price of LP gas increases by R2.50 cents per kg.

The Energy Department said the main reason for the fuel price adjustments is the average Brent Crude oil price increased from 96.47USD to 109.37 USD during the period under review. 

The department also said the Rand appreciated, on average, against the US Dollar (from 15.23 to 15.02 Rand per USD) during the period under review when compared to the previous one.

“The continued sanctions imposed on Russia, despite Russia’s discounted crude oil prices. This is disrupting energy flows as Russia is one of the biggest global exporters of oil. OPEC and Non-OPEC members limiting fuel supply even though demand has been increasing globally due to relaxed covid-19 restrictions. This has been ongoing even before the Russia/ Ukraine conflict began.”

“The Yemen rebels attacked storage facilities in Saudi Arabia, resulting in supply disruptions. Volatility in the market resulting in crude oil price decline due to fuel demand concerns in China, (a large importer of crude oil) following an increase in Covid cases which led to lockdown. However, this decrease is not enough to offset the overall average increase in oil prices during this period,” the department said.

The department said Finance Minister Enoch Godongwana, in his Budget Speech on the 23rd of February 2022, announced that the Fuel Levy and Road Accident Fund (RAF) Levy on both petrol and diesel will remain the same and not increase at 393.00 c/l and 218 c/l respectively.

“The carbon fuel levy will increase by 1.00c/l to 9.00 c/l for petrol and 10.00 c/l for diesel with effect from the 6th of April 2022. Due to the ongoing Russia – Ukraine conflict which has affected fuel prices globally, the Minister of Finance in consultation with the Minister of Mineral Resources and Energy announced a further temporary reduction in the general fuel levy of R1.50 for the next two months from Wednesday 6 April 2022 to Tuesday 31 May 2022.”

“The total fuel levy will now amount to 244.00 c/l for petrol and 230.00 c/l for diesel. This intervention will bring much needed relief to motorists because it will cushion the high fuel price increases that were anticipated this month which were as a result of the global factors. The increases in both petrol and diesel would have been close to R2.00 per litre and over R3.00 per litre respectively if there was no intervention,” the department said.

The department said there is an increase in the Slate levy. 

“An increase of 6.56c/l (i.e., from 46,06c/l to 52,62c/l) will be implemented into the price structures of petrol and diesel in line with the Self-Adjusting Slate Mechanism rules effective from the 6th of April 2022.”

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

Leave a Reply

Your email address will not be published.