The Department of Energy has released the official petrol price changes for January 2019, confirming a sizeable drop for petrol and diesel in the new year.
Both grades of petrol will see decreases of over a rand (R1.22 and R1.23 per litre for 93 and 95 octane, respectively), while the wholesale price of diesel will come down by even more – between R1.54 and R1.56 per litre.
Illuminating paraffin will also see a big drop of R1.64 (R1.23 wholesale).
The price changes come down to changes in the international prices of petroleum, as well as the rand/dollar exchange rate.
The average international product prices for Petrol, Diesel and Illuminating Paraffin decreased during the period under review.
The rand depreciated against the US dollar during the period under review, on average, when compared to the previous period.
The average rand/US dollar exchange rate for the period 30 November 2018 to 26 December 2018 was 14.1778 compared to 14.0923 during the previous period. This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 3.42 c/l, 3.98 c/l and 4.06 c/l respectively.
“2018 has shown just how vulnerable South Africa is to exchange rate volatility, and our key message to government is to work towards stabilising the economy and managing government debt,” the AA said.
“Our outlook for 2019 is that South Africa’s economic fundamentals and investor confidence which influences the Rand will be the biggest factors affecting fuel prices,” it said.
The changes will come into effect on 2 January 2019. Here is how the pump prices will be affected: