South African motorists will experience significant reductions in fuel prices in January, as announced by the Department of Mineral Resources and Energy.
This follows a trend of decreasing fuel costs observed in December 2023.
The price of petrol is set to drop by 62 to 76 cents per litre, while diesel will decrease by 118 to 126 cents per litre.
Additionally, there will be a reduction of 93 cents per litre in the price of Illuminating Paraffin.
However, LPGAS will see a slight increase of 11 cents per kg.
This pricing adjustment is influenced by the average international product prices for Petrol, Diesel, and Illuminating Paraffin, which have declined in the reviewed period.
The South African Rand, meanwhile, has weakened against the US Dollar, with an average exchange rate of 18.6608 in the period from 1 to 27 December 2023, compared to 18.5756 in the previous period.
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The changes in exchange rates have resulted in a higher contribution to the Basic Fuel Prices for petrol, diesel, and illuminating paraffin by 5.30, 5.83, and 6.00 cents per litre, respectively.
The Self-Adjusting Slate Levy Mechanism will also be adjusted, resulting in a decreased Slate Levy of 0.00 cents per litre (down by 26.32 cents per litre) for petrol and diesel, effective from 3 January 2024.
The new prices will be reflected at fuel pumps as follows, with inland and coastal areas having different rates.
93 Petrol will cost R22.17 inland and R21.45 at the coast, while Diesel 0.05% (wholesale) will be priced at R20.63 inland and R19.91 at the coast.
It’s also noted that there are suggestions for the government to further reduce petrol prices in South Africa.
