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Petrol price May 2019 - Motorists get more fuel price pain before May elections

Apr 28, 2019
Petrol price May 2019 - Motorists get more fuel price pain before May elections

Petrol price May 2019 comes after another fuel hike in April and is expected to add another burden on cash-strapped households

Port Elizabeth - The petrol price for May 2019 announced by Minister of Energy, Jeff Radebe, over the weekend sees motorists getting additional fuel price pain from Wednesday following another petrol price hike in April 2019.

The current petrol price in South Africa has burdened many households, who cannot afford another fuel price increase today. The May 2019 fuel price hike comes after motorists were hit with another massive fuel price hike in April 2019 following the introduction of new fuel taxes while global oil prices were rising. A weaker rand has also made the situation worse.

"Minister of Energy, Jeff Radebe, announced the adjustment of fuel prices for May 2019 based on current local and international factors with effect from the 1 st of May 2019," said the Department of Energy's Johannes Mokobane.

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

"International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.

"The international factors amounted to about 54.00c/l on petrol and 1.00c/l on diesel and 3.00 c/l IP."

Mokobane said that in more details, the main reasons for the fuel price adjustments are due to:

International factors to blame for petrol price May 2019 increases:

(1) The contribution of the Rand/US Dollar exchange rate - The rand on average has strengthened slightly against the US dollar from 14.3871 to 14.1401 rand per dollar. The settling of contagion risks from emerging markets provided a foundation for the rand's strengthening trend. This decreased the contribution on the Basic Fuel Price of petrol, diesel and illuminating paraffin by about 13.00c/l.

(2) The increase in the prices crude oil - The average Brent Crude oil price increased from 66.03 US dollars (USD) per barrel to 70.82 USD per barrel during the period under review. The Oil prices rose to the highest level in almost six (6) months as the US government decided to eliminate sanction waivers that allowed buyers to import Iranian crude oil. Geopolitical issues in the Middle East and Venezuela have provided added upward impetus to oil as output curbs by the Organization of Petroleum Exporting Countries (OPEC) and its allies to keep supplies in check. This led to adjustments the contribution on the Basic Fuel Price of petrol, diesel and illuminating paraffin by about 53.00c/l, 1.0c/l and 2.0 c/l respectively.

Based on current local and international factors, the fuel price for May 2019 will be adjusted as follows:

  • Petrol (93 and 95 Octane, ULP and LRP): 54.00 c/l increase;
  • Diesel (0.05% sulphur): 1.00 c/l increase;
  • Diesel (0.005% sulphur): unchanged;
  • Illuminating Paraffin (wholesale): 3.00 c/l increase;
  • SMNRP for IP: 4.00 c/l increase;
  • Maximum LPGas Retail Price: 84.00 c/kg increase.

The fuel prices schedule for the different zones will be published on Tuesday, 30 April 2019.

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