Here is the estimated cost

The Automobile Association (AA) projects a decrease in fuel prices, offering local fuel consumers a sigh of relief amid concerns over shipping routes in the Red Sea and a volatile Rand.

Next Wednesday, the Department of Mineral Resources and Energy will adjust prices based on unaudited data from the Central Energy Fund (CEF).

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Commenting on the CEF’s figures, the AA stated, “The numbers are still pointing to reductions to fuel prices across the board.”

Projections suggest ULP95 petrol could drop by approximately 54 cents per litre. ULP93 expected to decrease by around 39 cents per litre. Diesel prices are forecasted to decrease substantially, ranging between 94 cents per litre and R1.02 per litre. Illuminating paraffin is predicted to drop by about 95 cents per litre.

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Despite recent challenges in global oil markets, including attacks affecting shipping routes and pushing oil prices higher. The AA highlighted that the primary driver behind the expected decreases remains the downward movement in international oil prices.

The association acknowledged that the average Rand/US dollar exchange. While playing a smaller role, is still contributing to the anticipated decreases.

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Expressing concerns about persistently high fuel prices, the AA stated, “If the expected decreases are released, petrol prices will still be higher than they were in January 2023, but diesel prices will be marginally cheaper than at the same time.”

The association emphasised the need for a sustainable solution to mitigate rising fuel costs. It urged the government to initiate a transparent review of the fuel pricing structure.

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Envisioning 2024: Cautious optimism and unpredictability

As 2024 commences with a positive note for consumers, the AA remains cautious about the sustainability of this trend, especially considering current geopolitical developments impacting international oil prices.

The Association concluded by acknowledging that changes to the data are possible before the formal announcement by the Department of Mineral Resources and Energy but welcomed any relief at this stage.


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