CALL ME BACKCurrent 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 cents 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.
Based on the CEF’s data, ULP95 is expected to reduce by approximately five c/l, while ULP93 is set for a reduction of approximately 16c/l. Diesel is expected to increase by between 40c/l and 38c/l, while illuminating paraffin will increase by around 39c/l.
“Although the Rand/US dollar exchange rate was stable in the first two weeks in the period under review, the Rand weakened slightly against the USD following the American presidential elections, resulting in a less substantial decrease for all grades of petrol. International petrol prices have been declining for a while hence the expected decrease in petrol prices in December, but diesel prices continue to move in the opposite direction,” the AA notes.
The Association says it is important to remember that this is mid-month data and that the price outlook may change over the next two weeks before the official December adjustment is made. The official fuel price adjustments for December are likely to be announced at the end of November with the official adjusted fuel prices coming into effect on 4 December, the first Wednesday of the new month.
“Planning for a long journey during the December/January break should begin now and should include a complete once-over of your vehicle to ensure it is ready for a long trip. In addition to keeping your vehicle in good condition, we also urge all road users to ensure their state of mind is equally ready to share the road with other road users and to play their part in keeping our roads safe this festive season,” concludes the AA.
