Petrol price up in May but diesel down, says AA

Unaudited data from the Central Energy Fund (CEF) is indicating significant increases in the prices of both grades of petrol, pushing prices above R23 per litre for the first time this year.

Commenting on the data, the Automobile Association (AA) says the expected increases will put further pressure on embattled consumers grappling with food inflation which hit record highs in the first quarter of 2023.

The unaudited data is showing decreases to diesel and illuminating paraffin prices.

According to the latest data from the CEF, ULP95 is expected to climb by around 52c/l, and ULP93 by around 56c/l. The wholesale price of diesel is expected to decrease by between 31c/l and 57c/l, while the cost of illuminating paraffin is slated to come down by around 32c/l. 

“The decrease to diesel and paraffin prices is certainly good news, especially as the country enters colder months. But the increases to the petrol prices will add more strain to already stretched budgets, and consumers are advised to revise their budgets accordingly,” said the AA.

“There is no doubt these are difficult times, and petrol price increases will come as bad news for many who will have to dig even deeper in their pockets to keep mobile.”

“The surge in international oil prices is the main driver contributing to the under recovery in petrol, while the average rand/US dollar exchange rate during April is actually providing some relief, without which the increases could have been higher,” said the AA.

“The silver lining, though, are the expected diesel price reductions. Diesel is a big input cost in major sectors such as agriculture, mining and manufacturing and an increase here often contributes to increased prices of basic commodities.

“The current increase in the consumer price index (CPI) to 7.1% in March and food inflation hitting a 14-year high of 14.4%, plus an increase in diesel prices would have resulted in very unfavourable conditions for consumers.”

Officially adjusted fuel prices come into effect on May 3, the first Wednesday of May. An announcement on the official adjustment is expected from the department of mineral resources & energy in the next few days.