Motorists will be starting the new year with some relief at the pumps, with the fuel price dropping by 34c a litre from today.
The Department of Energy said yesterday that the latest fuel-price adjustment would bring a 34c/l decrease for 95-octane petrol, bringing the coastal price of this fuel to R13.93/l, and inland to R14.42/l.
The price of 93-octane petrol drops by 29c/l, which means motorists will now pay R13.79/l at the coast and R14.20/l inland. Diesel will also be cheaper. The price of diesel fuel with 0.05% sulphur content drops by 22c/l, while diesel with 0.005% sulphur falls 26c/l.
They will now cost R12.73/l and R12.34/l, respectively.
Department spokesman Johannes Mokobane also announced a 29c/l drop in the wholesale price of illuminating paraffin.
He said the pricing adjustments were attributed to the rand/US dollar exchange rate and an increase in the prices of crude oil.
“The rand appreciated against the US dollar from R14.10 to R13.27 on average during the period under review, compared with the previous one,” he said.
“This led to a lower contribution to the basic prices of petrol, diesel and illuminating paraffin by 42.03c/l, 42.75c/l and 42.90c/l respectively.
“The average Brent crude oil price increased from $62.50 a barrel to $63.77 a barrel during the period under review.
“Brent crude closed at its highest in more than two years due to the shrinking US stockpile, while a key North Sea oil pipeline remains shut.
“The repair of the pipeline is now complete, [but] this led to higher petroleum product prices,” Mokobane said.
Fuel prices are adjusted monthly and are determined by international and domestic factors.
The international factors include the fact that South Africa imports both crude oil and finished products at a price set at international level, along with shipping costs.