The Department of Mineral Resources and Energy (DMRE) has confirmed a significant drop in fuel prices to kick off 2023.
Glimmer of good news
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 82 cents per kilogram.
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Contributing factors
The DMRE said the main reasons for the fuel price adjustment 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 also appreciated slightly, on average against the US Dollar, from R17.53 to R17.28.
According to the DMRE, the negative slate balance on petrol and diesel totaled R7.46 billion at the end of November 2022.
The department confirmed a slate levy decrease of 21.9 cents per litre will be implemented for petrol and diesel, from 4 January 2023.
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Positive start to 2023
The Automobile Association (AA) said in a statement on Friday the reductions signaled a positive start to fuel pricing for next year.
“These decreases will not take fuel prices to levels seen in January 2022 but will, nonetheless, go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans.
“For many travellers who are currently on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” the AA said.
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