Following an unexpected fuel price increase in December, the Automobile Association (AA) says motorists can look forward to another marginal increase coming in the new year.
According to the association, the current unaudited data from the Central Energy Fund (CEF) shows a mixed bag of increases and decreases in fuel prices for January. Commenting on the data, the Automobile Association (AA) says it indicates that while there is a slight increase for ULP93, diesel and illuminating paraffin prices are expected to decrease.
Based on the data reviewed by the AA, unleaded 95-octane petrol is expected to increase by around three cents per litre, while unleaded 93-octane petrol 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.
According to AA spokesperson Eleanor Mavimbela, 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, Mavimbela says the data indicates that changes in international product prices significantly influence these forecasted reductions.
While these forecasted fuel price predictions are based on unaudited data from the CEF, it is essential to note that this is mid-month data, and the price outlook could change significantly over the next two weeks. A change in these forecasted prices could be made before the official January adjustment is announced by the Department of Mineral Resources and Energy, especially as the data trends closely towards a different trajectory.
“Considering that many people will be travelling 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.
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