The year 2022 kicks off with good news for motorists: ŉ Overall decline in fuel prices for January. The Department of Mineral Resources announced late Monday afternoon that the petrol price would drop by between 68c and 71c per liter on January 5, while the price of diesel would drop by between 67c and 70c per liter. Paraffin drops by 95c per liter.
According to the Automobile Association (AA), this can be largely attributed to the strengthening of the rand against the US dollar. “The rand fell significantly in mid-December when travel restrictions amid fears over the South African economy amid the spread of the Omikron variant. However, the rand has since gained significant ground and now stands at R15.88 against the dollar, an increase of 40c since two weeks ago, ”says the AA.
The oil price also remained predominantly stable during December despite fears of a new Covid-19 variant. “Petroleum prices are also expected to fall slightly internationally in the coming months, as demand for these products declines amid the spread of Omikron overseas. This in turn could lead to a drop in the oil price, which could be beneficial for South African petrol consumers. ”
However, the AA believes that the slight reduction in the price of fuel does not significantly change the issue that South Africans are still paying much more for fuel than just a few months ago. Therefore, pressure must still be put on the government to review the fuel price as a whole. The AA hopes the Minister of Finance will issue a statement that the petrol price will be reviewed before the end of the second quarter.
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