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Fuel prices could be slashed by as much as R2.80 in the new year, bringing welcome reprieve to cash-strapped motorists, the latest information from the Central Energy Fund shows.

The fund’s data shows that 95 unleaded petrol could be cut by R1.94 in January, with 93 petrol due for a R1.95 decrease.

Diesel prices could enjoy even steeper cuts of as much as R2.78 per litre.

The fuel prices are usually adjusted on the first Wednesday of a month and determined by the price of oil and the rand-dollar exchange rate.

Oil prices have been volatile – slumping in recent weeks in response to global fears of an economic slowdown but climbed again in the past few days over optimism stoked by China’s relaxation of its zero-Covid policy. In the longer-term it is thought that structural underinvestment in new oil supply could lead to structurally higher prices.

A strengthening in 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, compared to R20.29 a year ago – but down from a peak of R26.74 a litre in July.

The Gauteng price of diesel is R23.92 a litre, having come off a record high of R25.49 in October.

SOURCE:

Fuel prices headed for cut in the new year | Business (news24.com)