Page 12 - AfrOil Week 01 2023

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Diesel and gasoline prices dropped as of January 4 (BP Southern Africa: Eni)

Substantial cuts in motor fuel prices

bring relief to South African motorists

SOUTH AFRICA MOTORISTS in South Africa can expect some These decreases, according to the AA, will go
reprieve this month following the announce- a long way to alleviating the fuel price burden
ment of a substantial decrease in fuel prices from and its associated impact on other prices felt by
January 4, the local media outlet Independent millions of South Africans.
Online (IOL) reports. South African government came under
Commenting on data from the Central immense pressure in 2022 to buffer consum-
Energy Fund (CEF), the Automobile Associ- ers from fuel price hikes, selling off a part of
ation of South Africa (AA) says both grades the country’s strategic crude oil stocks to fund
of gasoline will decrease by around ZAR1.85 a temporary reduction in the fuel levy, reports
(about $0.11) per litre, diesel will decrease by News24. Additionally, global diesel supply con-
between ZAR2.47/l and ZAR2.59/l and illu- straints pushed prices higher in the fourth quar-
minating paraffin will decrease by around ter of the year, forcing South Africa to focus on
ZAR1.93/l. its declining domestic refining capacity.
“These reductions will bring the price of However, there is also some good news on
95ULP inland to around ZAR21.57/l and the refining side, as the new and improved
ZAR20.92/l at the coast, both prices close to Astron Energy refinery is due to come back
those last seen in March 2022,” the AA said in a online. As Glencore CEO Gary Nagle confirmed
statement on December 30. to News24 last month, the new refinery would
“The forecast reduction in the wholesale be supplying fuel into the South African market
price of diesel will bring this fuel cost down to in 2023.
around ZAR21.47/l. These reductions are cer- The refurbished plant will be able to produce
tainly good news for all consumers and signal additional products and, over time, could supply
positive start to fuel pricing for the new year.” fuels that comply with South Africa’s incoming
According to the CEF, the reductions are clean-fuel legislation, writes News24.
a result of a stronger average rand/US dollar This development, of course, will have no
exchange rate and significant decreases to inter- impact on the fuel price, which is regulated,
national product prices. according to Niall Kramer, an independent
“While the stronger rand is contributing to energy analyst. However, it is good news for
the decreases, the data shows the movement to the local economy and for manufacturing as
international product prices is playing the most by-products like LPG, bitumen, jet fuel and
substantial role to the forecast fuel price reduc- others have to be imported when refineries are
tions,” the AA said. closed. ™

P12 www. NEWSBASE .com Week 01 05•January•2023