The price of petrol and diesel in South Africa seems on track to decrease further after the latest forecast by the Central Energy Fund (CEF).
Indications following the CEF’s forecast for the week ending January 6 show that the petrol price for 93 and 95 octane could come down by 87 cents per litre, while the price of diesel could decrease by as much as R1.40.
More specifically, diesel 0.05% could drop by R1.41 and diesel 0.005% by R1.58%.
The price of paraffin is expected to decrease by R1.12 per litre.
The strengthening rand has been cited as one of the reasons for the fuel price coming down, especially in light of muted movement across the global oil sector.
However, you can’t have good news only.
News out of the US that the price of WTI crude (see report elsewhere) is on the increase could affect the CEF’s immediate future forecasts.
Although it bodes well for efforts by China and the US to stimulate their flagging economies, rising futures will inevitably erode rand gains against the dollar and potentially push the price of crude higher.
