After a lot of speculation and analysis of data, the fuel price changes for January have finally been confirmed by Mineral Resources and Energy Minister Gwede Mantashe.

In a statement published earlier today, Mantashe announced that most grades of fuel will see substantial decreases. The only fuel to increase in cost is LP gas.

“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. 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, eg, shipping costs,” the statement reads.

Fuel price adjustments:

• Petrol (both 93 and 95 ULP & LRP) will decrease by 206 cents per litre (c/l).
• Diesel (0.05% sulphur) will decrease by 268.9c/l.
• Diesel (0.005% sulphur) will decrease by 280.9c/l.
• The wholesale selling price of illuminating paraffin (IP) will decrease by 193c/l.
• The single maximum national retail price for IP will decrease by 258c/l.
• The maximum retail price of LP gas will increase by 82c/kg.

The minister cites that due to fears of a global economic recession, brent crude oil prices continue to drop. He adds that the price of LP gas increased due to ‘higher propane and butane prices’.

“The rand appreciated slightly on average against the US dollar (USD) [from 17.53 to 17.28 rand per USD] during the period under review. The stronger rand led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 15.27 c/l, 18.81 c/l and 19.20 c/l, respectively,” the statement adds.

Slate levy introduced

“The negative slate balance on petrol and diesel amounted to R7.046b at the end of November 2022. A slate levy decrease of 21.90c/l (from 83.28c/l to 61.38c/l) will be implemented into the price structures of petrol and diesel, in line with the self-adjusting slate mechanism rules, effective from January 4.”

Prices are expected to change at midnight.