Good news for motorists: Significant fuel price drops coming in January

South Africa’s cash-strapped motorists will be getting a welcome Januworry gift, with fuel price reductions of between R1,89 and R2,59, depending on their cars’ juice of choice.

The Automobile Association released a statement on Friday morning welcoming the data from the Central Energy Fund, announcing that the prices of diesel, petrol, and illumination paraffin are all set to decrease significantly next Wednesday.

All fuel grades and types to decrease

“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,” says the AA.

“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.”

The reductions are the result of a combination of a stronger exchange rate, as well as decreases in the international oil prices.

Also Read: 2022 was another tough year for SA economy

“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,” concluded the AA.