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Fuel Prices Adjusted Upwards for May 2024 Due to Global Oil Market Volatility

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The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, has announced the upcoming adjustment of fuel prices for May 2024. The adjustment, slated to take effect on the 1st of May 2024, is a response to the current local and international factors affecting fuel pricing.

International factors, particularly in the global oil market, have played a significant role in determining the new fuel prices. The average price of Brent Crude oil rose from 84.22 USD to 88.10 USD per barrel during the evaluation period. This increase was fueled by escalating geopolitical tensions in the Middle East and ongoing production cuts by OPEC+ countries.

Moreover, changes in international petroleum product prices have contributed to the fuel price adjustments. Petrol prices saw an increase due to higher Brent Crude oil costs and expected demand during the driving season. Conversely, diesel, illuminating paraffin, and LPGas prices decreased slightly, influenced by seasonal shifts and reduced demand in the Northern Hemisphere post-Winter.

Additionally, the fluctuation in the Rand/US Dollar exchange rate has impacted the new fuel prices. The Rand depreciated against the US Dollar, moving from 18.04 to 18.90 Rand per USD on average. This depreciation led to an increase in the Basic Fuel Prices for all products by approximately 2.50 cents per litre.

Lastly, the implementation of the Slate Levy has influenced the May 2024 fuel prices. With a negative cumulative slate balance of R2.73 billion for petrol and diesel as of March 2024, a slate levy of 21.92 c/l will be maintained in the price structures of petrol and diesel starting from the 1st of May 2024.

The final fuel prices for May 2024 will be disclosed in a scheduled publication on the 30th of April 2024. This adjustment reflects the dynamic nature of the global oil market and its impact on local fuel pricing mechanisms.

Rachel Adams

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