There may be relief in the offing for gasoline users.
Fuel prices could be cut by as much as R2.80 in the new year, bringing relief to cash-strapped motorists, the latest data from the Central Power Fund shows.
The fund’s data shows that unleaded 95 could be reduced by R1.94 in January, and that gasoline 93 will see a decrease of R1.95.
Diesel prices could enjoy even steeper cuts of up to R2.78 per litre.
Fuel prices are generally adjusted on the first Wednesday of a month and are determined by the price of oil and the rand-dollar exchange rate.
Oil prices have been volatile, plunging in recent weeks in response to global fears of an economic slowdown, but rising again in recent days on optimism stoked by China’s easing of its zero-Covid policy. In the longer term, it is believed that a structural lack of investment in the new oil supply could lead to structurally higher prices.
A strengthening of the rand, which improved from R17.38 a week ago to R17.30 on Tuesday, will help fuel prices.
In Gauteng, 95 petrol costs R23.46 a litre, up from R20.29 a year ago, but below the peak of R26.74 a liter in July.
The price of diesel in Gauteng is rand 23.92 per litre, after reaching a record high of rand 25.49 in October.
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