According to a media statement issued by the Department of Mineral Resources and Energy on Monday, 3 January, Minister Gwede Mantashe announced a fuel price adjustment that will take effect on Wednesday, 05 January.
This is after fuel prices increased on the 1st of December 2021, causing petrol to cost over R20 per litre.
Petrol prices will decrease by 71c per litre for 93 Unleaded and Lead replacement fuel (LRP), and 68c per litre for 95 Unleaded and LRP.
Diesel prices will decrease by 67.80c per litre for 0.05% Sulphur and 69.80c per litre for 0.005% Sulphur.
Prices for illuminating paraffin will decrease by 71c per litre, while LP Gas will decrease by 70c per kilogram.
These fuel prices are adjusted monthly, considering international and local factors.
Among the factors contributing to this change, the Rand depreciated from R15.40 to R15.92 per USD during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by about 29c per litre.
Other factors include the announcement by the United States to release up to 50 million barrels from the strategic petroleum reserve to boost supply, as well as the emergence of the omicron variant, which prompted concern about new movement restrictions that would reduce oil demand.