Weekly data from the Central Energy Fund (CEF) shows that motorists in South Africa are set kick off January with much lower petrol prices- and an even bigger cut on the cards for diesel.
According to the CEF’s data for 16 December 2022, motorists can expect a petrol price cut of around R1.93 per litre in January 2023, while diesel could be cut by as much as R2.83 per litre.
The forecasted drop in fuel prices comes amid falling oil prices and a strengthening Rand, Pretoria Rekord reported.
International factors play a significant role when a new fuel rate is determined, such as crude oil prices, the rand/US dollar exchange rate, and the slate levy.
These are the changes you can expect at the end of the second week of December:
- Petrol 93/95: decrease of R1.93 per litre
- Diesel 0.05%: decrease of R2.73 per litre
- Diesel 0.005%: decrease of R2.83 pre litre
- Illuminating paraffin: decrease of R2.16 per litre
A drop in oil prices is the biggest contributor to the equation, reducing international product prices by between R1.80 and R2.70 per litre in the local formula. The rand, which has recovered from political instability in recent sessions, is contributing to a 12 to 15 cent per litre drop.
Although even the best-case scenario for fuel price decreases in January will not bring any of the grades below the magical R20 per litre mark, they will certainly be a step in the right direction.
South African motorists and commuters have endured brutal increases this year, with 95 unleaded having risen to record highs of R26.06 at the coast and R26.74 inland, in July, after starting the year at R18.89 and R19.61 respectively.
Source: The Citizen, IOL, Business Tech, image from Twitter: @TopAutoSA