Petrol price to drop but diesel and paraffin to go up

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There is good news for motorists as the retail price for all grades of petrol will decrease by 10 cents a liter from Wednesday. However, diesel and paraffin will cost 20 cents more a liter.

This is according to the latest data from the Department of Energy.

Department’s statement on fuel prices:

Economists say the recent strength in the rand against the dollar has helped to counter the effects of higher crude oil prices. ABSA’s economist Miyelani Maluleke says despite the cut in the price of petrol, the fuel price remains high.

“In general the adjustments that we see are not surprising and SA has benefited from the strengthening in the rand to some degree.  The decrease in petrol price is a relief for consumers out there, but I think we need to remember that even with this cut the petrol price is still over R17 a liter and we started this year with petrol at R14,50. It’s still higher. And it implies that SA households are still paying a lot more for fuel this year, compared to last year.”

May increase

In May, the Energy Department said due to a stronger rand, the price of petrol will be cheaper by about 13 cents per litre, diesel will see a drop of 32 cents per litre and 23 cents per litre for illuminating paraffin.

The fuel price adjustment came after petrol reached record highs in April, with the retail price of R17.32  per litre for 95 unleaded inland.

It surpassed the previous record of R17.08 set in late 2018. Motorists were also hit with a 65 cents hike to the wholesale price of diesel in April.

The increases included the respective 16 cents per litre and 11 cents per litre for the fuel and Road Accident Fund levies on petrol and diesel.