News24 | Confirmed: Petrol pain on Wednesday, but diesel drops

The price of all grades of petrol will increase by R1.43 per litre on Wednesday, due in part to a surging slate levy, the Department of Petroleum and Mineral Resources (DPMR) announced on Monday morning.

The new price for 95 octane petrol will be R28.06 per litre in Gauteng and R27.19 per litre at the coast.

In the past four months, the petrol price has increased by almost R8 a litre.

As expected, the wholesale price of diesel will drop, but by slightly less than expected in light of an increased slate levy. Diesel with 0.05% sulphur will become cheaper by R3.25 per litre, while 0.005% will drop in price by R2.62 per litre.

Wholesale diesel with 0.05% sulphur will cost R27.93 in Gauteng and R27.05 per litre at the coast.

A massive R18.28 billion negative balance in the slate fund has led to an increase in the slate levy of 35.04 cents per litre. The slate levy increases to more than R1.57 cents, from R1.23 previously. The slate fund compensates wholesalers when the prices they pay daily increase after regulated prices are frozen for the month. The levy is paid retroactively, meaning the increase relates to the fuel price increase two months ago.

As expected, government’s fuel price levy relief instituted in May is cut by R1.50 per litre for petrol and by R1.96 per litre for diesel. The relief will fall away completely in July.

According to the DPMR’s statement, the rand strengthened marginally to an average of R16.52 against the dollar in the past month, compared to R16.65 in the previous month. This adds between 12c and 15c per litre relief to fuel prices.

International fuel prices have decreased. “The prices of middle distillates (diesel and paraffin) decreased more than petrol prices because of lower seasonal demand as the Northern Hemisphere moves into summer,” the DPMR said, adding that freight costs had also decreased.

Wholesale paraffin will be R5.96 cheaper per litre, and R7.95 cheaper per litre at retail level.

Gas becomes 17c cheaper per kilogram in Gauteng, and decreases by 20c per kilogram in the Western Cape.

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