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Good news for motorists

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The new year started on a good note for local motorists with a drop in the price of petrol.

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The new year started on a good note for local motorists with a drop in the price of petrol.

From yesterday, the price of petrol dropped by R1.22 a litre, while diesel came down by R1.53.

The Minister of Energy, Jeff Radebe, announced the adjustment of fuel prices, which came into effect on January 2, based on the current international factors.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.

According to the department, one of the main reasons for the fuel price adjustments was due to the contribution of the Rand/US Dollar exchange rate.

“The Rand depreciated, on average, against the US Dollar (from 14.09 to 14.18 Rand per USD) during the period under review when compared to the previous one. This led to a slightly higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin.

Another factor affecting the price of petrol local is the price of crude oil.

“The average Brent Crude oil price decreased from 65.09 USD to 58.28 USD per barrel during the period under review. This was due mainly to concerns about the growth in demand as stock markets weakened because of the confusion stemming from the postponement of a Parliamentary vote on Brexit deal.”

The international prices of all the petroleum products decreased on average during the period under review. This led lower contributions on the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 100.90 c/* , 133.00 c/* and 123.47 c/* respectively.

“In line with the Self-Adjusting Slate Levy Mechanism Rules, the Slate Levy on petrol and diesel will be zero effective from January 2, 2019,” the department stated further.

“The current combined Slate Account balance for petrol and diesel amounted to R690.00 million which is above the threshold of minus R250 million.”

Based on these current local and international factors, the fuel prices for January 2019 were be adjusted as follows: Petrol (93 Octane, ULP and LRP): 122.00 c/* decrease; Petrol (95 Octane, ULP and LRP): 123.00 c/* decrease; Diesel (0.05% sulphur): 153.92 c/* decrease; Diesel (0.005% sulphur): 155.92 c/* decrease; Illuminating Paraffin (wholesale): 123.00 c/* decrease; SMNRP for IP: 164.00 c/* decrease; Maximum LPGas Retail Price: 132.00 c/kg decrease.