Big petrol price drop expected in January

The price of petrol is expected to drop by 17 cents in January 2020, according to estimates from the AA.

Diesel is expected to increase marginally, while illuminating paraffin will see a slight decrease.

The AA based its outlook on the Central Energy Fund’s unaudited mid-month fuel price data.

It attributed the estimated shifts to the rand’s “impressive run of stability” from the beginning of November.

“The Rand has held steady during the first half of December, even appreciating slightly against the US dollar. This has contributed approximately nine cents in price relief. Meanwhile, the landed price of fuels has been mixed, with petrol down slightly, while diesel is up,” the AA stated.

The Association estimated the following movements in the per-litre price of fuels for January:

  • Petrol – 17 cents decrease
  • Diesel – 1 cent increase
  • Illuminating paraffin – 4 cents decrease

The relatively stable prices of basic fuels have also played a role in keeping consumer fuel price changes in check, the AA said.

“Although there has been a slight upward oil price trend that has manifested over the past few days, it is too early to tell whether this will persist. Barring any unforeseen surprises, we expect 2020 will kick off with only modest fuel price changes,” the AA added.

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Big petrol price drop expected in January