Petrol price fuel levy

A photo of several petrol pumps. Photo: Stock/Canva

Just In: Petrol price goes down on Wednesday this week

Hallelujah! Can you ask for anything better than this in January? South Africa’s petrol price is dropping this Wedensday, 5 January 2022.

Petrol price fuel levy

A photo of several petrol pumps. Photo: Stock/Canva

You read correctly, petrol price is dropping. While there is all these terrible news going on around Mzansi and whilst your bank account is looking scary after Christmas, these news on fuel costs should be rather sweet.

PETROL PRICE GOES DOWN ON WEDNESDAY 5 JANUARY

The news was announced by The Central Energy Fund (CEF) on Monday. It said that the retail price of petrol (93) will be cut by 71 cents a litre, while 95 will decrease by 68c.

The wholesale price of diesel will be lowered by 67.8 cents a litre, whilst the price of illuminating paraffin will decrease by 71 cents a litre.

Though these are fabulous news. There is still a need to wonder why the petrol price has dropped now? According to the statement, the Rand went down against the US Dollar from R15.40 to R15.92 per USD.

“The rand depreciated, on average, against the US Dollar (from 15.40 to 15.92 rand per USD) during the period under review when compared to the previous one,” the note said.

“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by about 29.00 cents per litre.”

NOVEMBER 2021 PRICE HIKE

Meanwhile, the folks at Solidarity might begin to cool down after today’s latest price drop. As The South African reported last November, the near R20 per litre fuel hike angered motorists and experts across the nation.

Trade union Solidarity sent formal writings to Energy and Finance ministers Gwede Mantashe and Enoch Godongwana to deregulate fuel prices and reduce fuel levy or face legal action.

“South Africans currently find themselves in the precarious position that many people have not fully recovered financially from the devastation caused by the Covid-19 pandemic,” said Theuns du Buisson, economic researcher at Solidarity.

The researcher added to say our local government artificially manipulates petrol prices, rather than striving to minimise the costs as other nations do.

Du Buisson believes the energy and finance ministers will be acting outside of reason and fair play if the hiked petrol price of nearly R20 per litre went ahead. The ministers could be taken to the court of law.

“Should the ministers decide not to offer relief to citizens, legal action challenging it in court cannot be ruled out,” Du Buisson concluded.