Motorists will usher in the New Year with a little more in their pockets thanks to news today that the petrol price is set to come down in January.
The Department of Energy on Friday announced that both grades of petrol 93 (ULP and LRP) and 95 (ULP and LRP) will decrease by R1.22 and R1.23 respectively.
The price of Diesel 0.05% sulphur will come down by R1.53 a litre while that of Diesel 0.005% sulphur is scheduled to come down by R1.55 a litre.
As of next Wednesday, a litre of 95 ULP will cost R14.01 a litre in Gauteng. This is the second consecutive fuel price drop recently.
In December both grades of petrol came down by R1.84 a litre to R15.24 a litre in Gauteng which is a far cry from the R17.08 motorists had to fork out in November.
Meanwhile, the price of Illuminating Paraffin (wholesale) will decrease by R1.23 in the wholesale price, while the price of Illuminating Paraffin (SMNRP) will decrease by R1.64.
“The average international product prices for petrol, diesel and illuminating paraffin decreased during the period under review,” said the department.
“The main driver of these reductions has been sagging international petroleum prices, spurred on by the USA which is trending towards becoming a nett exporter of oil. Should this ever come to pass, the power of the OPEC [Organisation of the Petroleum Exporting Countries] nations to influence petroleum prices would be reduced considerably, leading to increased oil price stability,” said the AA.
Meanwhile, in November, the department published a discussion document on the review of the Basic Fuel Price (BFP) structures.
The public has until 31 January next year to submit their comments with regards to the review of the BFP structures for petrol, diesel and illuminating paraffin.
In South Africa, while the wholesale price of petrol, diesel and illuminating paraffin (IP) are not regulated, the pump prices (retail prices) of all grades of petrol are regulated and government also sets the SMNRP for IP.