Mid-month data from the Central Energy Fund indicates that petrol prices show a marginal under-recovery of approximately 12 cents per litre for April.
For diesel, the data points to an over-recovery of approximately 30 cents per litre.
The anticipated changes:
Petrol 93: expected increase of 13 cents per litre Petrol 95: expected increase of 11 cents per litre
Diesel 0.05% (wholesale): anticipated decrease of 28 cents per litre
Diesel 0.005% (wholesale): anticipated decrease of 32 cents per litre
Illuminating paraffin: anticipated decrease of 45 cents per litre
The Department of Mineral Resources and Energy (DMRE) has clarified that its daily snapshots are not predictive and do not account for other potential adjustments, such as slate levy modifications or retail margin changes.
These adjustments are determined by the department at the end of the month, taking various factors into consideration.
Domestic fuel costs are primarily influenced by the rand/dollar exchange rate and international oil prices. In South Africa, fuel prices are adjusted on the first Wednesday of each month based on these factors.
Oil prices edged lower on Friday but were on track to gain nearly 4% for the week, boosted by the International Energy Agency revising its 2024 oil demand forecasts higher and an unexpected decline in U.S. stockpiles, Reuters reported.
The IEA said in its latest report that it expects global oil demand to rise by 1.3 million bpd in 2024.
Brent crude oil traded at around $85.05 a barrel.
The rand was steady in trade on Friday having slipped against a stronger dollar and mixed local manufacturing and mining data on Thursday.
Like most emerging market currencies, the rand takes direction from global factors such as US monetary policy in addition to domestic economic releases.
It's worth noting that April marks the beginning of the new financial year for the government, during which various tax increases take effect.
While there are no increases in the general fuel levy and Road Accident Fund levy for 2024, other minor taxes may impact the final fuel price for April.
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