What can South Africans expect to pay at the petrol stations in May? Photo: Pascal_84 and Yoann JEZEQUEL/ Flickr
Fuel prices are a topic of concern for many across the globe and with the fuel levy reduction ending in May, what can locals expect?
What can South Africans expect to pay at the petrol stations in May? Photo: Pascal_84 and Yoann JEZEQUEL/ Flickr
The Central Energy fund’s mid-month data show that petrol users can relax a bit, but diesel drivers may have to hold their breath.
The data shows that petrol could decrease by around 34 cents per litre in May. Diesel, on the other hand, shows an under-recovery of approximately 70 cents per litre
The mid-month snapshot is as follows, as reported by BusinessTech:
The Department of Energy, however, has stressed that the snapshots are NOT predictive and do not cover any other changes. Changes like retail margins and slate levy adjustments are not covered in these snapshots.
The Department stated that these potential changes are determined by it at the end of the month when it takes all variables into account. The Energy Department tends to make adjustments based on a review of the whole period.
In April, the National Treasury announced interventions to assist motorists with the increasing cost of fuel. Fuel prices skyrocketed in SA as a result of the Russia-Ukraine conflict.
The Government’s intervention allowed for a R1.50 reduction in the general fuel levy. This reduction will remain in place until 31 May 2022. Two main components affect fuel prices, one of which is oil prices.
The Russian invasion of Ukraine has heavily disrupted the global oil market. Prices have been fluctuating constantly. In recent days, the oil price has somewhat ‘stabilised’ to the $100 a barrel region.
While major traders may be looking at cutting away from Russian oil supplies, other nations that produce oil are planning to increase production.