The prices of fuel could be slashed by as much as R2.80 cents in the New Year, bringing a welcome reprieve to cash-strapped consumers, according to the latest information from the Central Energy Fund.
The fund’s data shows that 95 unleaded petrol could be cut by R1.94 cents in January, with 93 petrol due for an R1.95 cents decrease, while diesel prices could enjoy steeper cuts of as much as R2.78 cents per litre.
Oil prices have been volatile, slumping in recent weeks in response to global fears of an economic slowdown but climbed again in the past few days over-optimism stoked by China’s relaxation of its zero-COVID policy.
In the longer term, it is thought that structural underinvestment in the new oil supply could lead to higher prices. Fuel prices will rise as the local currency strengthens, which it has done slightly since last week.
