Following the decline in gasoline prices in September, diesel has become more costly than petrol in South Africa, owing to limited worldwide supply and high demand for this fuel type.
While this is an unusual event because diesel is normally the less expensive fuel, it is not the first time it has occurred.
During the global financial crisis in April 2008, the price of diesel surpassed that of petrol, with diesel 500ppm at coastal rates costing R9.25 per litre at the time, and petrol 95 costing R8.67.
Diesel prices did not fall below those of gasoline until March of 2009, over a year later.
Demand and supply
Diesel is typically the more economical fuel type in many nations since it is less refined than petrol and so less expensive to produce.
Both gasoline costs are heavily influenced by worldwide oil prices, which is why they nearly always change in tandem.
However, according to TreasuryOne, these variables are not currently playing a significant impact in diesel’s pricing domination.
Because of rising worldwide oil costs, both fuel kinds are presently among the most costly they have ever been.
The reason for diesel’s dogged refusal to go below R23 is not so much the input costs as it is the fundamental supply and demand law.
Is diesel less expensive than gasoline?
Petrol vehicles are often less fuel efficient than diesel vehicles.
You may pay less per litre for petrol than diesel, but you may wind up consuming more of it. This is especially true for longer travels at higher average speeds, when diesel engines perform best.
In South Africa, how much does a litre of fuel cost?
For this time period, the global average price of fuel is 33.91 South African Rand.
Do diesel or gasoline engines have a longer lifespan?
Diesel engines outlast gasoline engines. Diesel is a light oil that, when burned and utilized as fuel by a vehicle, lubricates the engine components. This extends the engine’s life.
