FUEL prices could be slashed by as much as R2.80 cents in the New Year, bringing a welcome reprieve to cash-strapped consumers, this is according to the latest information from Central Energy Fund.
business
Dec. 23, 2022
LENA
3 min read
Fuel prices expected to drop in new year, SA Central Energy Fund
Fuel prices could be slashed by as much as R2.80 cents in the New Year
Story highlights
In July this year, Lesotho government subsidised the increasing fuel prices by M1.50 excluding paraffin with M1.10 as of July to December this year.
The new fuel prices that were fixed in the last six months were, Petrol 93 cost M22.20 Petrol 95 M22. 65, Diesel M23.05 and Paraffin M17.80.
The fund’s data shows that 95 unleaded petrol could be cut by R1.94 cents in January, with 93 petrol due for an R1.95 cents decrease, while diesel users could enjoy steeper cuts of as much as R2.78 cents per litre.
Oil prices have been volatile, slumping in recent weeks in response to global fears of an economic slowdown but climbed again in the past few days over-optimism stoked by China’s relaxation of its zero-COVID policy.
In the longer term, it is thought that structural under investment in the new oil supply could lead to higher prices. Fuel prices will rise as the local currency strengthens, which it has done slightly since last week.
In an interview with Public Relations Manager from Petroleum Fund Mr. David Mahlo said on Lesotho's side they would have to monitor indicators provide fully detailed information on the first Wednesday of January.
He said there was a lot of factors to look into before reaching a conclusion whether to increase the price, to reduce it, or to leave it on the standard price, he therefore urged the public to remain calm.
Mr Mahlo reminded the public that prices are influenced by markets that is Rand versus Dollars as well as fuel prices. He therefore emphasised that members of the public will know about fuel prices when such information is released as it is always the case.
Meanwhile, in July this year, the government subsidised the increasing fuel prices by M1.50 excluding paraffin with M1.10 as of July to December this year.
Enjoy our daily newsletter from today
Access exclusive newsletters, along with previews of new media releases.
According to the Minister of Energy and Meteorology at that time, that was done in collaboration with the Minister of Finance and in accordance with Fuel and Services Control ACT of 1983 (1) (a).
The then Minister indicated that the new fuel prices were to be fixed for a period of six months which is expected to end now, and stand as follows, Petrol 93 will now cost M22.20 Petrol 95 M22. 65, Diesel M23.05 and Paraffin M17.80.
These changes were monitored by a committee made up of the Ministry of Energy, Petroleum Fund, Office of the Auditor General and the Accountant General, and the government put aside M30 Million per month to manage fuel prices.
In response to that, Mr. Mahlo indicated that they have approached Department of Energy to notify them about the end of an agreement term and are awaiting for the response on how the matter shall be handled.
The Petroleum Fund was established by the Minister of Finance through legal notice No 96 of 1997 for the purpose of financing the stabilisation of petroleum product prices when necessary, as well as the stabilisation of prices charged by oil companies on short-term basis.
The foremost priorities of the Fund will, in the short to medium terms, be on its mandate of ensuring the security of supply of petroleum products.
Tailored for you
