Fuel price to drop in January: Here’s how much you could soon be paying

2024 already looks like a good year, after the Automobile Association (AA) predicts a drop in fuel prices next month.

The AA, which publishes outlooks and fuel price commentary, noted unaudited data from the Central Energy Fund (CEF) that 95 unleaded petrol could come down by about 54 cents a litre, while 93 could drop by 39c.

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Diesel prices are also expected to drop by between 94c/l and R1.02c/l, while illuminating paraffin will drop by about 95c/l.

How much could I soon be paying at the pump?

This means you could pay R22.71/l for 95 inland and R21.99/l at the coast. 93 could cost you R22.40/l inland and R21.68 at the coast.

Diesel could soon cost between R21.05 and R20.79 a litre.

What is driving the decrease?

“On Wednesday, oil prices stabilised with some major shippers resuming passage [after] continued attacks which pushed oil prices higher. However, the downward movement in international product prices, oil prices, remains the main driver behind the expected decreases. The average Rand/US dollar exchange is playing a smaller role but is still contributing to the expected decreases,” the AA said.

It warned of the impact overall high prices had on consumers, noting the expected decreases would still mean petrol prices were higher than they were in January 2023. Diesel prices will be marginally cheaper than at the same time.

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“We must see all of this in the context of consumers who are still recovering from steep fuel price hikes in September and October,” it said.

“We again call on the government to urgently initiate a transparent review of the fuel pricing structure.”

Changes to the projected petrol price are expected before the formal announcement by the Department of Mineral Resources and Energy (DMRE) next week.