New year kicks off with good news at fuel pumps

Henry

Travelers who still have to return home after the Christmas holidays can at least stop by fuel pumps with a slight smile – the price of petrol and diesel drops at midnight today (Tuesday).

Mineral Resources and Energy Minister Gwede Mantashe has announced the final fuel prices for the first month of the new year.

The price of 93-octane petrol will henceforth be 62c per liter cheaper, while the price of 95-octane petrol will drop by 76c per litre.

From Wednesday (3 January) it will be R1.18 per liter cheaper to fill up with diesel with a sulfur content of 0.05%. This while the price of diesel with a sulfur content of 0.005% drops by R1.26 per litre.

Bulk paraffin will be cheaper by 93c per litre, while gas will cost 11c per kilogram more.

According to Mantashe, the average price of crude oil fell in the review period because the USA, Venezuela and Guyana had higher production.

The average international product prices of petrol, diesel and paraffin have consequently fallen in line with the lower crude oil prices. However, the price of gas has increased due to higher transport costs.

The cumulative balance fund on petrol and diesel was around R1.8 billion in the green by the end of November, which means that no balance fund levy was incorporated into the price of fuel in January.

“This means that motorists will get an advantage of 26c per litre, as the balance fund levy drops to 0c per litre,” said Mantashe.