Fuel prices to drop at midnight

As the country goes through a period of high consumer inflation, motorists will be breathing a sigh of relief tomorrow as they fill up.

This after minister of mineral resources and energy, Gwede Mantashe, announced the adjustment of fuel prices based on current local and international factors.

The international factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs.

According to Mantashe the revised prices will be effective from January 3.

A 93 octane of petrol will cost 62 cents less per litre, petrol 95 octane will decrease by 76 cents per litre while diesel (0.05% sulphur) will see a R1.18 per litre decrease.

Diesel (0.005% sulphur) will decrease by R1.26 per litre and illuminating paraffin (wholesale) 93 cents per litre.

Commenting on the fuel price decrease, the Automobile Association (AA) a non-profit organisation that makes formal representations on behalf of motorists in the country said despite the poor perfomance of the Rand against the US Dollar, the data shows that the movement of international product prices is playing the most substantial role in the forecast reductions.

“These decreases will go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans. For many travellers who will be going on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” concludes the Association.

The People Against Petrol and Paraffin Price Increases (PAPPI) has welcomed the petrol prices expected decrease that will take effect on Wednesday.

Visvin Reddy,PAPPI President said any slash in the price of fuel is welcome.

“I think we need to see the fuel prices in South Africa within the context of how our politicians have actually abused and mismanaged the fuel prices system in the country. Because of that, we’re still paying exorbitant prices for petrol.”

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