By Selloane Ntshonyane
- Petrol will drop by 65 cents per litre, diesel by 50 to 57 cents, and paraffin by 53 cents each.
- The rand strengthened from R16.85 to R16.31 against the dollar, helping reduce fuel costs despite crude oil price increases globally.
Motorists will get some relief at the pumps this week. Petrol, diesel and paraffin prices will drop from Wednesday, 4 February.
The Minister of Mineral and Petroleum Resources announced the fuel price drop. The latest fuel price adjustment comes as global oil prices, exchange rates and international supply conditions continue to shift.
Both Petrol 93 and Petrol 95 will decrease by 65 cents per litre. Diesel prices will drop by between 50 and 57 cents per litre. Illuminating paraffin will also be cheaper, decreasing by 53 cents per litre.
However, people who use LPG gas will have to pay slightly more. The price of LPG gas will increase by 31 cents per kilogram. In the Western Cape, it will increase by 36 cents per kilogram.
South Africa adjusts fuel prices every month. This is based on both international and local factors. Since the country imports crude oil and fuel products, changes in global oil markets play a major role in local fuel prices.
During the review period, the average Brent crude oil price increased from 61.47 US dollars to 64.08 US dollars per barrel.
According to the department, this was mainly due to geopolitical tensions involving countries such as Iran and Venezuela. Extremely cold weather also disrupted oil production in the United States.
Despite the increase in crude oil prices, international fuel product prices dropped because there was enough supply available. This helped reduce fuel costs locally.
In addition, the rand strengthened against the US dollar, improving from R16.85 to R16.31. This further helped bring prices down.
The department said the LPG increase is due to tighter global supply caused by cold weather in the Northern Hemisphere.
The department confirmed that the slate levy will remain unchanged at zero cents per litre.
Pictured above: Fuel pump.
Image source: File
