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The Minister of Mineral Resources and Energy, Gwede Mantashe, announced the adjustment of fuel prices based on local and international factors effective as of Wednesday, January 6.
Based on current local and international factors, fuel prices for January 2021 have been adjusted as follows:
- The price of gasoline (93 and 95 ULP and LRP) will increase 43 cents per liter;
- Diesel (0.05% and 0.005% sulfur) will increase by 55 cents per liter; and
- Luminous paraffin (wholesale) will increase by 55 cents per liter.
South Africa’s fuel prices are adjusted monthly, informed by international and local factors, Mantashe said.
International factors include the fact that South Africa imports both crude oil and finished products at an internationally set price, including import costs.
The main reasons for the fuel price adjustments are due to the contribution of the rand / US dollar exchange rate, which caused a reduction in the contributions to the prices of basic fuels of gasoline, diesel and paraffin of lighting at about 24.00 carats.
Crude oil prices increased nearly 20% from $ 42.10 per barrel during the review period.
The Automobile Association (AA) said it was concerned about the nearly 13% rise in international oil prices.
Although oil prices have stabilized over the past few days, the AA said it was too early to say whether this was a new plateau or “an expected setback as business activity slowed over the weekend of Christmas”.
“The trend through Dec. 17 was markedly up, and if that picks up more momentum in the new year, it won’t bode well for fuel prices in 2021.
“While South African fuel prices are well below their all-time highs, the country’s economy is in a fragile state and any impact on international oil prices or the rand / US dollar exchange rate could affect severely to fuel users, ”AA said.
Compiled by Vhahangwele Nemakonde and Nica Richards.
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