Massive petrol and diesel price cuts could be on the cards for January if the oil price and rand trends persist until the end of the month.
IT MIGHT be too late for your December road trip, but early data shows that massive fuel price cuts next month could ease some of the January stress.
The Central Energy Fund’s unaudited data for the first 12 days of December are showing huge over-recoveries for petrol and diesel. Although it’s too early to make precise predictions, the early signs are pointing to a petrol price cut of around R1.90 per litre, while diesel is looking poised to decrease by up to R3.00 per litre.
This would bring the price of 95 Unleaded petrol down to around R20.90 at the coast, while 93 Unleaded petrol in the inland regions could fall to around R21.25. A R3 diesel decrease would see the wholesale price of 50ppm falling to R20.60 at the coast and R21.22 inland, keeping in mind that, historically speaking, diesel is expensive.
For the predictions to come true, the rand and international oil prices will need to remain stable for the remainder of the month. And given the political turbulence, and the ruling party’s upcoming December conference, a lot can happen. Lower oil prices are working in our favour, with Brent Crude trading at around $77 per barrel at the time of writing. However, that could swing either way between now and January, given the global economic uncertainties.
Although even the best-case scenario for fuel price decreases in January will not bring any of the grades below the magical R20 per litre mark, they will certainly be a step in the right direction.
South African motorists and commuters have endured brutal increases this year, with 95 Unleaded having risen to record highs of R26.06 at the coast and R26.74 inland in July, after starting the year at R18.89 and R19.61 respectively.
