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Motorists can expect significant fuel price reductions to start 2023 says the Automobile Association (AA). Commenting on data from the Central Energy Fund (CEF), the AA says both grades of petrol, diesel and illuminating paraffin prices are showing substantial decreases which will come into effect when the official adjustment for January is made next Wednesday, 4 January 2023.
“According to the data, petrol (both grades) will decrease by around R1.85/litre, diesel will decrease by between R2.47/l and R2.59/l and illuminating paraffin will decrease by around R1.93/l. These reductions will bring the price of 95ULP inland to around R21.57/l and R20.92/l at the coast, both prices close to those last seen in March 2022. The forecast reduction in the wholesale price of diesel will bring this fuel cost down to around R21.47/l. These reductions are certainly good news for all consumers and signal positive start to fuel pricing for the new year,” says the AA.
According to the CEF, the reductions are a result of a stronger average Rand/US Dollar exchange rate, and significant decreases to international product prices. While the stronger Rand is contributing to the decreases, the data shows the movement to international product prices is playing the most substantial role to the forecast fuel price reductions.
“These decreases will not take fuel prices to levels seen in January 2022 but will, nonetheless, go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans. For many travellers who are currently on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” concludes the Association.
NOTE TO EDITORS:
The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated. Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy. The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.
The AA publishes outlooks and fuel price commentary based on publicly available information and communicates movements to the fuel price in the interest of informing consumers.
