Motorists can look forward to New Year fuel price drop

It may be a good start to the new year for South African motorists as fuel price decreases are on the cards.

Unleaded petrol (95) is expected to be lower by around 54 cents per litre, while unleaded petrol (93) is set to drop around 39 cents per litre.

Diesel prices are expected to drop substantially, by between 94 cents per litre and R1.02 per litre, while illuminating paraffin will drop by around 95 cents per litre.

The Automobile Association (AA), which was commenting on unaudited data from the Central Energy Fund (CEF), said despite the volatile rand and concerns around shipping routes in the Red Sea, local fuel prices are still expected to decrease when they are adjusted by the Department of Mineral Resources and Energy on Wednesday next week.

“On Wednesday, oil prices stabilised with some major shippers resuming passage following continued attacks, which pushed oil prices higher.

ALSO READ: Paramedics issue road safety plea

“However, the downward movement in international product prices – oil prices – remains the main driver behind the expected decreases.

“The average rand/US dollar exchange is playing a smaller role but is still contributing to the expected decreases,” said AA spokesperson Layton Beard.

“Although we are expecting fuel to be cheaper in January, we remain concerned about the overall high prices which impact all consumers.

“If the expected decreases are realised, petrol prices will still be higher than they were in January 2023, but diesel prices will be marginally cheaper than at the same time.

“We must see all of this in the context of consumers who are still recovering from steep fuel price hikes in September and October,” said Beard.

The AA further says, while 2024 is starting on a positive note for consumers, it’s still too early to determine if the trend to lower prices will continue, especially given current geo-political developments which impact on international oil prices.

HAVE YOUR SAY