Here is the official price of gasoline for January

The Department of Energy has announced the official fuel price adjustments which will come into effect on Wednesday, January 6, 2021.

All grades of fuel will see price increases this month, with gasoline rising between 40 cents and 43 cents per liter, and diesel increasing between 54 and 55 cents per liter.

The official changes are as follows:

• Gasoline 95: increase of 40 cents per liter;
• Gasoline 93: increase of 43 cents per liter;
• Diesel 0.05%: increase of 55 cents per liter;
• Diesel 0.005%: increase of 54 cents per liter;
• Illuminating paraffin: increase of 55 cents per liter.

The movement of prices is affected by two main factors: international oil costs and the movement of the rand / dollar exchange rate.

Average international prices for gasoline, diesel, and lighting paraffin products increased during the review period and the rand appreciated against the US dollar during the review period, on average, compared to the previous period .

The average rand / US dollar exchange rate for the period from November 27, 2020 to December 30, 2020 was 14.9391 compared to 15.6305 in the previous period. This caused a lower contribution to the Basic Fuel Prices of gasoline, diesel and light paraffin in 24.19 c / l, 25.00 c / l and 24.30 c / l respectively.

However, this was completely undone by the movement in international oil prices, which contributed to increasing international costs for petroleum products by between 65 cents per liter and 80 cents per liter for gasoline and diesel, respectively. .

International oil prices have stabilized in recent weeks, but the Automobile Association said it is too early to say whether this is a new plateau or an expected setback as business activity slowed over the Christmas period.

“The trend through December 17 was markedly up, and if that picks up more momentum in the new year, it will not bode well for fuel prices in 2021,” he said.

“While South Africa’s 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 hurt severely to fuel users. “

Another small change in the last adjustments is the price difference between 93 and 95 gasoline.

“Regarding the Labor Standards to administer the BFP, the differentials between 95 and 93 degrees of gasoline are adjusted at the beginning of each quarter. The Basic Price of Fuel differentials between 95 and 93 grades of gasoline have changed and, therefore, the different price adjustments between the two grades, ”the department noted.

This is how the changes will be reflected in the pumps:

Read: Expect Higher Gasoline and Diesel Prices in January