The May diesel price increase amount has been adjusted downwards following an error made by the DMPR.
Image: File
Wednesday's diesel price increase will be 92 cents lower than originally announced. This is due to an error made in the initial statement issued by the Department of Mineral and Petroleum Resources (DMPR) on Monday.
A statement released by DMPR on Tuesday evening confirms that the price of diesel will increase by R5.27 per litre from Wednesday, May 6, and not R6.19, as was originally announced. It is understood that the mix-up was related to a decimal error that resulted while calculating the temporary tax reprieve, which was increased by 93 cents to R3.93 per litre in the case of diesel for the month of May, while the petrol price relief measure remains at R3.00.
Thus, the petrol increase remains at R3.27 per litre as originally announced on Monday.
Following the price adjustments of May 6, South Africans will pay R25.80 for a litre of 95 Unleaded petrol at the coast and R26.63 inland, where 93 Unleaded will cost in the region of R26.52. The wholesale price of 50ppm diesel will rise to about R30.62 at the coast and R31.38 in Gauteng, with the retail margin adding a further R2.50 or more, depending on the outlet.
This will be a new price record for diesel. However, the petrol price remains below July 2022’s peak of R26.09 per litre at the coast, following Russia’s invasion of Ukraine. That price dropped to R21.71 within three months, however, as international oil prices receded.
Notwithstanding the aforementioned error, May's fuel price increases are higher than had been initially anticipated, thanks to a Slate Levy imposition of R1.22 per litre. The Slate Levy essentially compensates fuel companies for price fluctuations that took place in the preceding month. The cumulative slate reflected a negative balance of R14.17 billion at the end of March 2026, the department added.
May’s fuel price increases are almost solely the result of rising international product prices, with the rand having a negligible effect of about three to five cents on the pricing structure.
South Africans could be in for even bigger price shocks in June, should there not be a resolution to the war in the Middle East.
May’s fuel prices are based on Brent crude oil prices averaging below $101 per barrel during the most recent review period. However, stalled US-Iran peace talks have sent the black gold trading between $113 and $126 in the past week.
A further blow to consumers will be the winding down of South Africa’s temporary fuel tax reprieve, which is set to be halved to R1.50 per litre for petrol and R1.96 for diesel during the month of June, before falling away completely in July. The R3 per litre fuel tax relief measure remains until June 2, and has been increased to R3.93 in the case of diesel.
ALSO READ: Why ending South Africa's fuel tax reprieve may be premature, and damaging to the economy
National Treasury and the Department of Mineral and Petroleum Resources announced last week that the R3 fuel tax relief would remain in place for petrol during May, while diesel would see a further 93c reprieve for the month.
However, from July onwards, motorists will pay the full General Fuel Levy amounts of R4.10 on petrol and R3.93 for diesel.
IOL Motoring