Motorists can expect further fuel price drops for January

Petrol

Cape Town — The Automobile Association (AA) offered some relief to South African motorists as fuel prices are set for yet another price drop for January 2024.

According to data gathered by the Central Energy Fund (CEF), both 93 and 95 petrol, diesel, and illuminating paraffin prices are set for big decreases, bringing significant financial relief to motorists as they enter the new year, AA revealed in their latest statement.

“According to the data, ULP93 will decrease by around 68 cents/litre, and ULP95 will decrease by 82c/l. Diesel is set to decrease considerably by around R1.50/l with illuminating paraffin also decreasing by around R1.42/l. The forecast reductions in the wholesale price of diesel will bring this fuel cost down to around R20,32/l inland, coming in at a price lower than the same time last year,” AA said.

The expected reductions are due to significantly lower international product prices, despite the Rand not performing well against the US Dollar. The data shows that the movement of international prices is playing a key role in forecast reductions.

“These decreases will go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans. For many travellers who will be going on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” AA concluded.

According to News24, there is still a few weeks to go before final prices are set as fuel prices will only be adjusted on 3 January.

South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars. The price of Brent crude oil traded close to $83 a barrel at the start of December but has since fallen to around $75.

Follow African Insider on Facebook, Twitter and Instagram

Picture: Pixabay

For more African news, visit Africaninsider.com 

Compiled by Matthew Petersen

Article written by