Fuel prices expected to decrease for January

Local fuel prices are expected to decrease when they are adjusted by the Department of Mineral Resources and Energy next Wednesday, according to the Automobile Association of South Africa.

Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the department.

Commenting on unaudited data from the Central Energy Fund (CEF), the association said the numbers are still pointing to reductions to fuel prices across the board.

According to the CEF’s figures, ULP95 petrol is expected to be lower by around 54 cents a litre while ULP93 is set for a drop of around 39c/l. Diesel prices are expected to drop by between 94c/l and R1.02c/l, while illuminating paraffin will drop by around 95c/l.

“Although we are expecting fuel to be cheaper in January, we remain concerned about the overall high prices which impact on all consumers. We must see all of this in the context of consumers who are still recovering from steep fuel price hikes in September and October,” the association said.

The association further said while 2024 is starting on a positive note, it was still too early to determine if the trend to lower prices will continue, given current geo-political conflicts which impact on international oil prices.

The association said oil prices remain 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,” the statement read.