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Tuesday, 02 January 2024 12:27

Motorists get some relief at the pumps at the start of the new year.

By Lehlohonolo Lehana.

The Department of Mineral Resources and Energy (DRME) has published the official fuel price adjustments for January 2024, showing another sizeable cut for both petrol and diesel to start the new year.

Both grades of petrol will decrease by 62c and 76c  per litre, while diesel will decrease by R1,18 and R1, 26 cents per litre and illuminating paraffin by R1,24 per litre.

However, LP gas will increase by 11c per kilogram.

The department's spokesperson Robert Maake says the increase in the price of LP gas is due to higher trade rates and high prices of butane.

Maake said there were several international and local factors that contributed to the decreases in petrol and diesel prices.

These included a drop in crude oil prices, international petrol product prices, the Rand/US Dollar exchange rate, and a reduction in slate levy from 26 cents to zero cents per litre.

The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period.

The average Rand/US Dollar exchange rate for the period 01 December 2023 to 27 December 2023 was 18.6608 compared to 18.5756 during the previous period.

This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 5.30 c/l, 5.83 c/l and 6.00 c/l, respectively.

In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 0.00 c/l (decrease of 26.32 c/l) will be implemented into the price structures of petrol and diesel with effect from 03 January 2024.