Petrol is set for a substantial increase in June while diesel users will benefit from significant price cuts.The department of petroleum and mineral resources (DMPR) announced that petrol prices for 93 ULP and 95 ULP will rise by R1.43 a litre from Wednesday, reflecting higher international oil prices linked to geopolitical tensions in the Middle East.The increase will push up costs for motorists already grappling with rising transport expenses, although the impact has been partly cushioned by a reduction in fuel levies.By contrast, diesel prices will fall sharply. The wholesale price of 0.05% sulphur diesel will decrease by R3.24/l, while 0.005% sulphur diesel will decline by R2.61. The wholesale price of illuminating paraffin will drop by R5.96/l, while the maximum retail price of LP gas will be reduced by 17c a kilogram nationally and by 20c a kilogram in the Western Cape.According to the DMPR, the average Brent crude oil price rose from $101 (R1,642.28) a barrel to $104.59 (R1,700.66) during the review period. The increase was driven by ongoing tensions between the US and Iran and the closure of the Strait of Hormuz, a critical global oil shipping route.While higher crude oil prices lifted fuel costs across the board, diesel and paraffin prices moved in the opposite direction to petrol because of weaker global demand.“The prices of middle distillates decreased more than petrol prices because of lower seasonal demand as the northern hemisphere moves into summer,” the department said.The rand also provided some relief. During the review period, the currency strengthened from R16.65/$ to R16.52/$, reducing the cost of imported fuel products and lowering contributions to the basic fuel price.A further cushion came from government’s decision to reduce the general fuel levy, effective from Wednesday. The levy has been cut by about R1.50/l for petrol and R1.96/l for diesel.Without the levy reduction, petrol price increases would have been significantly steeper, while diesel users would have seen smaller reductions.New Discovery Insure data shows that motorists filled up less and made fewer trips in May as high fuel prices continued to change how they travel and commute — with diesel drivers cutting back the most.Telematics and fuel card transactions from more than 200,000 Discovery Insure clients show that motorists bought 23% less fuel in May, while fuel transactions dropped by 17%, compared to January and February.Discovery Insure’s earlier analysis showed that litres purchased in April dropped by 35%, while fuel transactions declined by 28% after the initial fuel price increase.These changes in driving behaviour follow consecutive fuel price increases implemented in April and May, which have put pressure on household budgets. “These are not normal fluctuations,” says Robert Attwell, CEO of Discovery Insure. “When compared to the past few years, we rarely see fluctuations of more than 1% in fuel demand and driving behaviour. What we are seeing now reflects the real financial pressure people are under.”While some of the factors that drove recent fuel price increases have started to ease, uncertainty remains around the fuel price outlook, including the government’s temporary fuel levy relief measures. As a result, motorists may continue to face fuel price pressure in the months ahead.From June 3 the following prices will apply:INLANDPetrol 93: R27.95Petrol 95: R28.06Diesel 0.05%: R27.92Diesel 0.005%: R28.76COASTPetrol 93: R27.16Petrol 95: R27.19Diesel 0.05%: R27.97Diesel 0.005%: R28.00TimesLIVE
Fuel prices diverge as petrol is hiked and diesel drops
Good news for diesel drivers as price reduces by up to R3.24 a litre










