The latest fuel price update from the Central Energy Fund shows that South African motorists can expect a big drop in fuel prices at the beginning of January.
According to the CEF’s data for the week ending 21 December 2022, Motorists can expect a petrol price cut of around R194 per litre in January 2023, while diesel could be cut by as much as R2.73 per litre.
The price forecast stays the same virtually from the end of the previous week except for a 10 cent per litre reference in the diesel price. This represents a relative stable market, which increases the chances of these changes carrying through to the end of the month.
The rand is pushing at R17 to the dollar once again, with the rand trading R17.02 vs the dollar since 26 December 2022.
The lower prices are being driven by much lower international product prices as well as strength in the rand relative to the US dollar.
According to market analysts, the positive turn for the rand comes as local political uncertainty eased following the victory of President Cyril Ramaphosa at the ANC’s 55th elective conference which took place in the middle of the month, as well as a softer dollar as risk sentiment improves.
These are the changes to expect at the end of week 3 of December:
- Petrol 93/95: decrease of R1.94per litre
- Diesel 0.05: decrease of R2.62 per litre
- Diesel 0.005: decrease of R2.73 per litre
- Illuminating paraffin: decrease of R2.07per litre
As has been the case for much of the month, a drop in oil prices is the biggest contributor to the equation, reducing international product prices between R1.80 to R2.55 per litre in the local formula for petrol and diesel, respectively.
The Department of Energy is expected to announce the official petrol and diesel price changes on Wednesday, 4 January 2023.
Source: Business Tech, Sunday World, image from Twitter: @MmegiOnline