It is indeed a happy new year for motorists, who can look forward to a helse reduction in the fuel price on Wednesday.
According to the Department of Mineral Resources and Energy (DMRE), the price of both grades of petrol will decrease by R2.06 per litre from today, while diesel is to drop by between R2.68 (500ppm) and R2.80 (50ppm).
This means that a litre of 95 unleaded petrol will now cost R20.75 at the coast and R21.40 inland.
The wholesale price of 50ppm diesel is set to drop to R20.79.
If you drive a klein car like a VW Polo and are putting in 35 litres into its 40l tank, you’re looking at a saving of R72 per refill.
According to the Central Energy Fund, the January price reductions are the result of significantly lower international oil prices and, to a lesser degree, a stronger rand.
“These decreases will not take fuel prices to levels seen in January 2022, but will go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans,” said the Automobile Association (AA).
A litre of 95 unleaded cost R18.89 at the coast in January 2022.
Meanwhile, civil organisation, People Against Petrol and Paraffin Price Increase (Papppi) said it would like to see a ripple effect of price decreases from tomorrow.
Visvin Reddy, national convener of Papppi, said: “We must remember that when fuel prices go up, food, transport and other things increase.
“Seeing a reduction in prices of all these things would be good for ordinary South Africans. If this reduction would not affect them, then it does not have much effect.”