Johannesburg - South African motorists are facing a mixed bag of news at the pumps this month. While petrol prices are offering some respite, diesel users are bracing for a significant increase that will hit their wallets hard. Get ready for the midnight price change!
Petrol Relief, Diesel Pain
Starting from midnight, petrol prices will decrease by 28 cents per litre. A welcome change for many! However, the joy is short-lived for those relying on diesel, as prices are set to jump by as much as 65 cents per litre. Illuminating paraffin will also see an increase, while LP gas users in the Western Cape will enjoy a 78-cent decrease per kilogram.
Why the Price Fluctuations?
These changes are driven by shifts in global oil prices, supply trends, and a slightly stronger Rand. The average Brent Crude oil price has decreased marginally from $69.36 to $69.06, influencing the petrol price decrease. However, low diesel stocks in the US, unplanned refinery shutdowns, and refinery closures in the EU have tightened supply, leading to increased diesel and paraffin prices.
- Petrol 93 and 95: 28c/l decrease
- Diesel (0.05% sulphur): 65c/l increase
- Diesel (0.005% sulphur): 63c/l increase
- Illuminating paraffin (wholesale): 32c/l increase
The Organization of the Petroleum Exporting Countries (OPEC)'s decision to increase production also contributed to the lower crude oil price. However, uncertainties surrounding US trade tariffs are casting a shadow over global economic growth and demand for crude oil.
So, while some South Africans can breathe a sigh of relief, others will be digging deeper into their pockets. Prepare accordingly!