Whereas oil producing countries like Nigeria and Angola are currently lamenting over the global drop in the price of crude oil, Tina Joemat-Pettersson, South African energy minister, has welcomed the huge decrease in the fuel prices, saying they will be a big relief to motorists and users of Liquefied Petroleum Gas, LPG, and paraffin, especially in low-income households.
The Department of Energy in South Africa recently announced the reduction prices of petrol, diesel, illuminating paraffin and LPG with effect from January 7, 2015.
Petrol will decrease by 127 cents/litre, diesel will decrease by 105 cents/ litre, illuminating paraffin (SMNRP) will decrease by 144 cents/litre and LPG will decrease by 210 cents/kilogram.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
According to the department, the main reason for the fuel price decreases is the continued drop in the price of crude oil which led to a decrease in the prices of petroleum products – petrol, diesel, illuminating paraffin and LPG – in the international markets.
However, the depreciation of the Rand against the Dollar led to an increase in the contribution to the Basic Fuel Price by between 17.92 cents/litre and 19.75 cents/litre. This was off-set by the drop in the crude oil price during the period under review.
The slate levy on petrol and diesel remain unchanged at zero cents per litre, due to positive cumulative over-recoveries on these products, said the energy department.

Folashade Olubayo
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