While its still too early in the month to call prices for February 2023, early data from the Central Energy Funds (CEF) is pointing to another price cut for petrol and diesel so far.
As a reminder prices for both petrol and diesel dropped significantly earlier this week and was welcomed by motorists across the country.
Petrol decreased by R2.06 per litre for both 93 and 95 octanes, while the 0.05% diesel price dropped by R2.69 per litre and the 0.005% diesel price by R2.81.
The daily snapshot- which is not predictive but rather indicative of prevailing conditions- shows a R1 per litre over-recovery for petrol and around R1.70 per litre for diesel.
If current market conditions persist to the end of the month, these are the broad fuel price changes that motorists can expect.
Things could get even better for fuel prices, however, with oil prices tanking this week, while the rand has climbed to a fourth-month high against the US dollar.
If the market conditions persist for the remainder of January, another significant decrease is on the cards for February for both petrol and diesel users between 81 to 88 cents for petrol, while diesel motorists could see 143 to 158 cents per litre drop.
Oil prices surged this tanked around 9% this week, as demand concerns dug into the market. On Thursday, the spot price of Brent Crude dropped below $80 a barrel, trading at $79.
According to Bloomberg, the survive in Covid-19 cases in China has been clouding the near-term demand outlook, overshadowing optimism that commodity consumption in the World’s top importer will eventually rebound.
This has been exacerbated by thin liquidity, which has left oil futures prone to wild price swings, Bloomberg said.
Source: Business Tech, The South African, image from Twitter: @TheBriefLive