Pump Relief: Easing the Pressure at the Fuel Stations

Relief is on the horizon for drivers at the start of the year. The price of fuel will decrease today. Minister of Mineral Resources and Energy Gwede Mantashe announced that 93 (ULP & LRP) will be reduced by 62 cents per litre. In comparison, 95 (ULP & LRP) will substantially decrease by 76 cents per litre, as reported by SANews.

To break it further down:

• 95 petrol – from R23.25 to R22.49 per litre in Gauteng. 
• Diesel (0.05% sulphur) – 118.32 cents per litre. 
• Diesel (0.005% sulphur) – 126.32 cents per litre. 
• Illuminating Paraffin (wholesale) – 93 cents per litre.
• Single Maximum National Retail Price (SMNRP) for illuminating Paraffin – R1.24 per litre.

The adjustments in fuel prices are due to various factors, including: 

• crude oil prices, 
• international petroleum product prices, 
• the Rand/US Dollar exchange rate, 
• the implementation of the Slate Levy, and 
• the octane differential between 95 and 93 petrol grades.

Also read: Anticipated Fuel Price Drop Predicted by CEF for Festive Season

Notably, the average Brent crude oil price decreased from 82.62 US Dollars (USD) to 77.35 USD due to increased production by the United States of America, Venezuela, Guyana, and other non-OPEC countries. This decrease contributed to lower Basic Fuel Prices of petrol, diesel, and illuminating Paraffin.

Despite the slight depreciation of the Rand against the US Dollar during the review period, the positive slate balance on petrol and diesel at the end of November 2023 resulted in a slate levy of zero cents per litre, benefitting motorists by 26.32 cents per litre.

With the adjustment in the Basic Fuels Prices (BFP) octane differential, the retail prices of 95 and 93 petrol octanes will differ in each fuel-pricing zone, effective January 3, 2024.

Also read:

December’s Official Fuel Prices: Petrol Savings Diminished by Margin Hikes

Picture: Unsplash / engin akyurt

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