Current unaudited data from the Central Energy Fund (CEF) shows a mix of increases and decreases in fuel prices for January. Commenting on the data, the Automobile Association (AA) says the data indicates that while there is a slight increase for ULP93, diesel, and illuminating paraffin prices are expected to decrease.
Based on the data, ULP95 is anticipated to increase by around three cent per litre, while ULP93 is projected to increase by 11 cents per litre. Diesel prices are expected to drop by approximately three cents per litre, and illuminating paraffin is set to decrease by about 14 cents per litre.
These expected reductions are attributed to lower international product prices observed from the end of the previous month. Although the Rand has not been performing well against the US Dollar for most of the review period, the data indicates that changes in international product prices significantly influence these forecasted reductions.
It is essential to note that this is mid-month data, and the price outlook could change significantly over the next two weeks before the official January adjustment is announced, especially as the data trends closely towards a different trajectory.
“Considering that many people will be traveling by vehicle in December and January, we advise motorists to carefully plan their budgets now to ensure they have adequate funds to cover their expenses, which may include toll fees on certain routes,” states the AA.
The officially adjusted fuel prices will take effect on Wednesday, 1 January, and the Department of Mineral Resources and Energy (DMRE) will announce the official adjustments.
