Great news for diesel and petrol users in the new year, with prices coming down by R2.06 and R2.80 per litre in January 2023.
The Department of Energy has published the official petrol and diesel price changes for January.
The fuel price changes will come into effect on 4 January 2023.
In a statement released on Saturday, the following figures were cited for the different grades of fuel from 4 January 2023:
- Petrol- 93 and 95 ULP and LRP: R2.06 per litre decrease;
- Diesel- 0.05% and 0.005% sulphur: R2.68 and R2.08 decrease respectively;
- Illuminating paraffin (wholesale): R1.93 decrease; and
- Single Maximum National Retail Price (SMNRP) for illuminating paraffin: R2.58 decrease;
- LP Gas will increase by 82cents per kilogram.
The DMRE said the main reasons for the fuel price adjustments were an average Brent Crude oil price decrease from $88.77 per barrel to $85.08 per barrel during the period under review.
Oil prices also continue to drop, in response to fears of a global economic recession.
LP Gas increased due to higher propane and butane prices.
The Rand appreciated against the US Dollar during the period under review, on average, when compared to the previous period. The average Rand/US Dollar exchange rate for the period 02 December to 28 December 2022 was 17.2815 compared to 17.5338 during the previous period.
This led to a lower contribution to the Basic Fuel Price on petrol, diesel and illuminating paraffin by 15.27c/l, 18.81c/l and 19.20c/l, respectively.
The combined cumulative petrol and diesel Slate balances at the end of November 2022 amounted to a negative balance of R7.046 billion. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, Slate Levy of 61.38c/l (decrease of 21.90c/l) has been implemented into the price structure s of petrol and diesel with effect from 4 January 2023.
Source: Business Tech, The Citizen, ALGOA FM, image from Twitter: @southafricanmag