Fuel prices will be reduced in the new year

Relief may be on the horizon for petrol users.

Fuel prices could be cut by as much as 2.80 rand in the new year, giving cash-strapped motorists a welcome respite, the latest information from the Central Energy Fund shows.

The Fund’s data shows 95 unleaded petrol could be cut by R1.94 in January, with 93 petrol due for a R1.95 cut.

Diesel prices could be reduced even steeper by as much as R2.78 per litre.

Fuel prices are typically adjusted on the first Wednesday of each month and are determined by the price of oil and the rand-dollar exchange rate.

Oil prices have been volatile – plummeting in recent weeks in response to global fears of an economic slowdown, but rebounding in recent days as optimism was fueled by China’s relaxation of its zero-Covid policy. In the longer term, it is assumed that structural underinvestment in new oil stocks could lead to structurally higher prices.

A strengthening in the rand, which rose to 17.30 rand on Tuesday from 17.38 a week ago, will help fuel prices.

In Gauteng, ’95 petrol is R23.46 a liter, down from R20.29 a year ago – but down from a peak of R26.74 a liter in July.

Diesel prices in Gauteng are at R23.92 per liter after hitting a record high of R25.49 in October.

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