The official fuel price adjustments for April 2022 have been published by the Department of Mineral Resources and Energy. And South Africans are relieved by the fact that it “could have been worse”.
The petrol price increases for April are as follows:
- Petrol 95: increase of R0.36 per litre;
- Petrol 93: increase of R0.28 per litre;
- Diesel 0.05%: increase of R1.52 per litre;
- Diesel 0.005%: increase of R1.69 per litre;
- Illuminating Paraffin: increase R2.66 per litre.
The adjustments for this month took into account the emergency interventions that were announced by National Treasury as they cooperated with the energy department. As a result, it was announced that the General Fuel Levy will be reduced by R1.50 until 31 May 2022.
The petrol prices are also in a much better position now, compared to previous months, thanks to the rand being in a stronger position versus the dollar. There has also been some stability with regards to the global oil price – although this is still the main cause for a huge under-recovery in the basic fuel price.
This is how the price changes are expected to reflect at the pumps:
| Fuel (Inland) | March official | April official |
|---|---|---|
| 95 Petrol | R21.60 | R21.96 |
| 93 Petrol | R21.35 | R21.63 |
| 0.05% diesel (wholesale) | R19.49 | R21.01 |
| 0.005% diesel (wholesale) | R19.55 | R21.24 |
| Illuminating Paraffin | R13.19 | R15.84 |
Other interventions to be considered after May
According to Finance Minister, Enoch Godongwana, a broad number of interventions will be considered at the end of May. This includes a full review of the basic fuel price.
Other interventions include:
- A reduction in the Basic Fuel Price of 3c/l – to be recommended by the Department of Mineral Resources and Energy (DMRE) after review.
- The termination of the Demand Side Management Levy (DSML) of 10c/l on 95 unleaded petrol sold inland.
- The introduction of a price cap on 93 octane petrol. This will allow retailers to sell at a price below the regulated price.
- The termination of the practice to publish guidance by the DMRE on diesel prices to promote greater competition.
- The Regulatory Accounting System (including the retail margin, wholesale margin and secondary storage and distribution margins) will be reviewed to assess whether adjustments can be made to lower the margins over the medium term. Interventions will be considered by the DMRE to reduce the price pressure for illuminating paraffin over the medium term.