Gasoline price slump comes in January – report – Die Welt

For South African drivers, there could be good news at the pumps in the New Year, with significant fuel price cuts expected next week.

That comes from leaked data from the Central Energy Fund (CEF), which at Network24.

Wednesday’s data showed a drop of between 73 cents and 76 cents, depending on the type of fuel.

This is despite an 8.7% rise in the price of Brent crude oil and the ongoing weakening of the rand against the US dollar.

While the price of oil will largely determine the price of gasoline, the government is buying a mix of fuels from overseas and it seems that this amount will actually be cheaper.

The decline could have been around 29 cents more if the rand had stayed at its previous average level.

The average rand dollar exchange rate was around R15.74 between November 26 and December 29, compared to R15.39 trading the previous month.

One factor that could change the equation is the shale tax, which is used to offset the industry for a shortfall in fuel sales due to the change in the purchase price of fuel over the month.

There could be even more significant price cuts if the government cuts the slate levy from the current 41.66 cents per liter. However, the balance needed to restore it was around 4.7 billion rand in October 2021.

The reduction could be a huge relief for vacationers looking to return home starting next week, Wednesday January 5, 2022, after the monthly rate change goes into effect.

Motorists in the country have paid for fuel more than ever in recent months, with domestic prices hitting record levels of over R20 for both 95 and 93 unleaded gasoline.

The wholesale price for diesel is also higher than ever before.

Netwerk24 had to use leaked information as the energy department decided to stop publishing daily updates on the expected fuel price.

This was allegedly due to a rift between the department and the Automobile Association of South Africa (AA).

The ministry accuses the AA of using the expected fuel price increases to promote their business interests.

The AA previously released a bi-monthly update forecasting expected price changes based on data provided by the CEF.

But the AA has hit back, claiming the decision was not in the best interests of the public, who might use the predictions to budget their fuel spending for the coming month.

The department continues to make this information available to fuel industry stakeholders.

Now read: 13 exciting electric cars are coming to South Africa in 2022 – and what they will cost

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Reference-www.nach-welt.com

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