South African motorists could see a huge decrease in petrol and diesel prices in January 2023, with a major drop in global oil prices and a relatively stronger rand working in consumers’ favour.
According to the latest forecast from the Central Energy Fund (CEF), for the week ending 9 December 2022, the price of petrol is anticipated to come down by over R1.50, while the price of diesel could be cut by as much as R3.50.
The current estimation is that the fuel prices will come down owing to a corresponding drop in global oil prices and a relatively stronger rand working in consumers’ favours, reports Business Tech.
The latest forecast from the Central Energy Fund, covering the week ending 9 December 2022, suggests that the following fuel prices changes will occur in the first month next year:
- Petrol 93- Decrease of R1.53 per litre
- Petrol 95- Decrease of R1.53 per litre
- Diesel 0.05- Decrease of R.46 per litre
- Diesel 0.005- Decrease of R3.52 per litre
The daily snapshot- which gives a quick glance at market conditions on a given day, shows that things are looking even more positive, with petrol prices moving towards an R1.89 per litre drop, with diesel slightly lower at R3.40 a litre.
However, keep in mind that the official price adjustments will take into account the entire month’s data, such as any changes in retail margins and the Slate Levy, and could therefore change significantly before year-end.
The main driver behind the lower projected prices is a huge drop in the international product prices for petroleum, which are guided by global oil movements.
According to Bloomberg, crude oil remains on track for its first back-to-back quarterly decline since mid-2019 as the demand outlook sours and thin liquidity exacerbates price swings into the year-end.
In South Africa, another reason for the improved prices is attributed to a more favourable Rand/US Dollar exchange rate, where the rand was trading below R17 to the dollar in the last two weeks.
Source: Business Tech, The South African, Top Auto, image from Twitter: @TopAutoSA