Logistics firms and motorists could get massive relief at the pumps in January 2023. The latest weekly forecast from the Central Energy Fund (CEF), for the week ending December 9, indicates that the petrol and diesel prices could drop significantly in the New Year. The latest forecast comes after a major drop in global oil prices and a relatively stronger rand/US dollar exchange rate.
According to CEF’s forecast for the week ending December 9, petrol prices are expected to drop by more than R1.50 per litre and the diesel price could decrease by R3.50.
The changes forecast for January 2023 are as follows:
- Petrol 95 and 93 to decrease by R1.53 per litre
- Diesel 0.05% to decrease by R3.46 per litre
- Diesel 0.005% to decrease by R3.52 per litre
- Illuminating paraffin to decrease by R2.27 per litre
According to the CEF, the main reason for lower prices is the massive decline in international product prices of petroleum, which are impacted by global oil price fluctuations. Global oil prices have decreased, with the spot price of Brent Crude currently approximately $76 a barrel, down from $87 a barrel at the end of November.
The rand is continuing to hold out against the US dollar, despite volatility due to political uncertainty. It was trading below R17 to the dollar before the parliamentary panel released findings alleging that president Cyril Ramaphosa may have a case to answer for in an impeachment process. This led to a weakening of the currency to around R18 to the dollar, however it is still stronger than it was at R18.50 in previous months.
