By Lehlohonolo Lehana.
The Department of Mineral Resources and Energy (DMRE) has confirmed a significant drop in fuel prices to kick off 2023.
On Wednesday, the petrol price (both 93 and 95 unleaded) will be cut by R2.06 a litre, while diesel will be lowered by between R2.69 and R2.81.
A litre of 95 petrol will cost R21.40 in Gauteng and R20.75 on the coast.
Petrol is now the cheapest it’s been since February 2022, when Russia’s invasion of Ukraine triggered a spike in oil prices.
Diesel will cost R21.23 a litre in Gauteng and R20.58 on the coast.
Diesel prices remain more elevated than petrol and are still above levels last seen in April.
In a statement, the department of mineral resources and energy said that the average Brent oil price fell from $88.77 a barrel to $85.08 over the past month.
“The oil prices continued to drop due to fears of economic recession globally,” the department said.
The rand also strengthened slightly against the dollar.
Local fuel prices are determined by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars.
The price of illuminating paraffin will drop by R1.93 a litre.
The Automobile Association (AA) said in a statement on Friday the reductions signaled a positive start to fuel pricing for next year.
“These decreases will not take fuel prices to levels seen in January 2022 but will, nonetheless, 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 are currently on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” the AA said.