Motorists are hoping for some festive cheer after last month’s fuel prices increase.
There may be good and bad news for motorists with the possible decrease in the diesel price, but an increase in petrol price.
Motorists were hoping for some festive cheer after last month’s fuel prices increase.
Current unaudited data from the Central Energy Fund (CEF) indicates potential increases and decreases in fuel prices for January, which could change as the month comes to a close.
Predicted fuel prices
Commenting on the preliminary numbers, the Automobile Association (AA) said while there is a slight price increase for unleased 93 octane petrol, diesel, and illuminating paraffin, price drops are expected in January.
“Based on the data, ULP95 is anticipated to increase by around three cents per litre, while ULP93 is projected to increase by 11 cents per litre. Diesel prices are expected to drop by approximately three cents per litre, and illuminating paraffin is set to decrease by about 14 cents per litre.”
The AA said the expected reductions are attributed to lower international product prices observed from the end of the previous month.
“Although the rand has not been performing well against the US Dollar for most of the review period, the data indicates that changes in international product prices significantly influence these forecasted reductions.”
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Price projections
The AA said the current projections are mid-month data, and the price outlook could change significantly over the next two weeks before the official January adjustment is announced, especially as the data trends closely towards a different trajectory.
“Considering that many people will be travelling by vehicle in December and January, we advise motorists to carefully plan their budgets now to ensure they have adequate funds to cover their expenses, which may include toll fees on certain routes.”
The Department of Mineral Resources and Energy (DMRE) will announce the official adjustments next month, with the officially adjusted fuel prices taking effect on Wednesday, 1 January.
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