Decrease in petrol price a “big relief”, says Minister

JANUARY 6, 2015

Energy Minister, Tina Joematt-Pettersson, has welcomed the huge decrease in the fuel prices, saying they will be a big relief to motorists and users of Liquefied Petroleum Gas (LPG) and paraffin, especially in low income households.

The Department of Energy on Friday announced that the prices of petrol, diesel, Illuminating paraffin and LPG will decrease with effect from 7 January 2015.

Petrol will decreaseby 127 cents/litre, diesel will decrease by 105 cents/ litre, illuminating paraffin (SMNRP) will decrease by  144 cents/litre and LPG will decrease by 210 cents/kilogram.

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

According to the department, the main reason for the fuel price decreases is the continued drop in the price of crude oil which led to a decrease in the prices of petroleum products - petrol, diesel, Illuminating Paraffin and LPG - in the international markets. 

However, the depreciation of the Rand against the US Dollar led to an increase in the contribution to the Basic Fuel Price by between 17.92 cents/litre and 19.75 cents/litre. This was off-set by the drop in the crude oil price during the period under review.

The slate levy on petrol and diesel remain unchanged at zero cents per litre, due to positive cumulative over-recoveries on these products, said the department. –