The Central Energy Fund updated their weekly fuel price recently, and indications are that motorists can expect to pay less in the beginning of the new year.
The data shows that motorist can expect a petrol price cut of around R1.94 per litre, while diesel could be cut by R2.73 per litre in January 2023.
The price forecast stays the same virtually from the end of the previous week except for a 10 cents per litre difference in the diesel price. This represents a relatively stable market.
These are the changes you can expect, at the end of week 3 in December.
- Petrol 93/95: decrease of R1.94 per litre
- Diesel 0.05%: decrease of R2.62 per litre
- Diesel 0.005%: decrease of R2.73 per litre
- Illuminating paraffin: decrease of R2.07 per litre
A drop in oil prices is the biggest contributor to the equation, and this influences the drop in international product prices between R1.80 and R2.55 per litre in the local formula for petrol and diesel respectively.
The rand has been unstable for a period. However, the rand started gaining most of its losses early in December, and this contributes to a 12 to 16 cents per litre drop in the price.
The rand is pushing at R17 to the dollar once again, with the rand trading R17.02 vs the dollar since 26 December 2022.
According to market analysts, the positive turn for the rand comes as local political uncertainty eased following a solid victory for President Cyril Ramaphosa at the ANC’s 55th elective conference in the middle of the month, as well as a softer dollar as risk sentiment improves.
Analysts said that the dollar has been over-valued for some time, given the risk-averse market conditions being driven by a year littered with rate hikes at major central banks – but the sentiment is now shifting, and the greenback could soften even further.
Locally and abroad is still priced into markets, however, with more volatility expected in 2023. But, for now at least, currency exchanges are working in favour of local motorists.
The Department of Energy is expected to announce the official petrol and diesel price changes on Wednesday, 4 January 2023.
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