Massive price cuts for petrol and diesel will begin in 2023

South African motorists will be greeted with significant price reductions at the pump beginning in early 2023.

The Department of Mineral Resources and Energy has released the country’s official fuel prices for January 2023, which indicate significant reductions in petrol and diesel costs.

From Wednesday, 4 January 2023, the retail price of 93 and 95 unleaded fuel will fall by R2.06 per litre.

A litre of 95 unleaded fuel will thus cost R21.40 inland and R20.75 on the coast.

Wholesale fuel costs will fall even more, with 50ppm falling by roughly R2.81 and 500ppm falling by around R2.69.

The wholesale price of illuminating paraffin will also be reduced by R1.93 per litre.

The fuel price adjustments for January 2023 are as follows:

• 93/95 unleaded petrol — R2.06 decrease
• 500ppm diesel — R2.69 decrease
• 50ppm diesel — R2.81 decrease
• Illuminating paraffin — R1.93 decrease

The cutbacks, according to the department’s Central Energy Fund (CEF), were caused by a drop in average worldwide product prices for these fuel types throughout the review period.

This lead to a significant decline in retail petrol costs of about R1.70 per litre, R2.28 in wholesale 500ppm diesel prices, and R2.40 in wholesale 50ppm diesel prices.

Furthermore, the rand strengthened somewhat versus the US dollar, making it cheaper to buy petrol than the previous month.

“The average Rand/US Dollar exchange rate for the period 2 December to 28 December 2022 was 17.2815 compared to 17.5338 during the previous period,” the CEF stated.

“This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 15.27 c/l,18.81 c/l and 19.20 c/l respectively.”

Furthermore, by the end of November 2022, the cumulative slate balances for petrol and diesel showed a negative balance of R7.046 billion.

As a result, from January 4, 2023, the slate levy will be cut to 61.38 cents per litre in the price structures of gasoline and diesel.

This will be 21.90 cents per litre less than in December 2022, contributing to further reductions in petrol and diesel costs.

Between December 2022 and January 2023, the table below compares the inland and coastal retail costs of unleaded 93 and 95.