South Africa: The country observes a reduce in both petrol and diesel prices in the new year. The Automobile Association (AA) of South Africa confirms the possible reduce in prices at the petrol pumps with effect from Wednesday, January 03, 2024.
Notably, motorists will see a decrease in the prices of the following:
- The drivers have to pay 54c less for petrol
- They have to pay more than R1 per litre for diesel
- Paraffin will see a drop of about 95c per litre
The Department of Mineral Resources and Energy will announce and adjust the prices on Wednesday. There is no confirmation statement regarding the increase and decrease of the fuel prices that have been released yet by the department.
The Automobile Association released a full statement on December 28, 2023, and stated that despite the volatile Rand and concerns around shipping routes in the Red Sea, local fuel prices are expected to decrease.
The AA commented on the unaudited data from the Central Energy Fund (CEF) and said that the numbers are still indicating to reduction in fuel prices across the board.
According to CEF, ULP-95 petrol is anticipated to decrease by 54% per litre, while ULp-93 may decrease by 39% per litre. Similarly, the prices for diesel are expected to go down by 94% per litre and R1.02% per litre, while illuminating paraffin will decrease by 95%.
Recently, the oil prices stabilised, with some major shippers resuming passage with continuous attacks, which pushed oil prices higher.
The downward movement in international product prices, especially oil prices, remained the main driver behind the expected decreases. The average Rand or US dollar exchange is playing a smaller role but yet contributing to the expected drop.
The Association mentioned that they are expecting cheaper fuel in January and are concerned about the overall high prices, which impact all consumers.
AA added to its statement that if the expected decreases of petrol prices will still be higher than they were in January 2023, but prices of diesel will be marginally lower than at the same time.
Adding further to its statement, AA says while 2024 is beginning on a positive note for consumers, it’s still too early to determine if the prices will get lower, considering especially the current geo-political developments which are impacting international oil prices.