The new year seems to be heading for a flyer for South Africans behind the wheel, who are on course for a petrol price decrease of R1.22 per liter. It marks a second huge drop in fuel costs in the past two months.
Earlier in December, the Central Energy Fund (CEF) made a very optimistic forecast that gasoline would drop by a further R1.33 per liter. However, a fluctuating margin to dollar exchange has ruled something in those grandiose predictions.
Tuesday's update means that the petrol price has now plummeted more than two times within two months. Diesel drops with R 1.53 p / l and the lighted paraffin drops with R1.22. Based on current prices, this is what South Africans can expect to pay in January …
Petrol price for South Africa, January 2019:
- Gasoline price for domestic region & # 39; s: R13.79
- Gasoline price off the coast: R14.10
- Diesel price wholesale: R13.14
In a press statement released last week, the AA made the changes. With America trying to establish itself as a larger exporter of oil – at the expense of OPEC – the price of Brent Crude has taken a bit of a dive. They also warn, however, that the exchange rate between the dollar and the dollar may dampen the long-term profit for Mzansi's drivers:
"The main reason for these reductions was the sagging of international oil prices, fueled by the US, which tend to become a net exporter of oil, and should this ever happen, the OPEC countries' power to cut crude oil prices would significantly reduced, leading to higher oil price stability. "
"However, such scenarios will play out in the longer term and South Africans should be more concerned with short-term effects such as the exchange rate between the Rand and the US dollar."
Qatar's decision to withdraw from OPEC (the organization of oil-exporting countries) does not seem to have any real effect until the new year. They contribute only a fraction of the oil supply of the group of global superpowers, but their decision to abandon fossil fuels may still upset the market in the future.