According to the most recent data from the Central Energy Fund, motorists can anticipate lower fuel prices in the new year. The price of petrol is set to decrease by nearly R2 a litre, and the price of diesel could see an even steeper drop of as much as R2.78 per litre.
This could be a welcome relief after holiday spending sprees put a strain on household budgets.
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According to data from the fund, the price of 93 and 95 unleaded petrol will both likely decrease in January by R1.94 and R1.95 respectively.
Even more drastic reductions in diesel prices, up to R2.78 per litre, may be possible.
The price of fuel is usually adjusted on the first Wednesday of each month, based on the price of oil and the rand-dollar exchange rate.
Oil prices have been erratic, rising recently after China relaxed its “zero-CO2” policy and falling in recent weeks as a result of global concerns about an economic slowdown. Long-term structural underinvestment in the new oil supply is thought to contribute to structurally higher prices.
The strengthening of the rand, which rose from R17.38 one week ago to R17.30 on Tuesday, contributes to the declining cost of fuel.
95 litres of petrol in Gauteng cost R23.46, up from a high of R26.74 in July but down from R20.29 a year ago.
Following a record high of R25.49 in October, the price of diesel in Gauteng is now R23.92 per litre.
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