Leaked Data Suggests That Petrol Price Could Decrease by at Least 70c per Litre in January
- A leaked report reveals that fuel prices might drop by 73 to 76c per litre in the first week of January 2022
- Recent negative economic trends, such as the weakening Rand, make this news seem quite unexpected
- The Department of Energy and Mineral Resources is expected to release a statement about the new fuel prices in the next few days
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JOHANNESBURG - A leaked report reveals that there is a possibility that fuel prices will drop by 73 to 76c per litre in the first week of January 2022.
This news is relatively unexpected given the recent dramatic rise in fuel prices, the weakening rand and Brent Crude oil trading 8% higher. Fuel prices generally follow trends set by oil prices, so it is considered unusual for fuel prices to decrease in the current economic climate.
The leaked data further suggests that had the Rand not weakened against the US Dollar earlier this week, the petrol price could have decreased by 29c more per litre, MyBroadband reports.
Source: Getty Images
South Africa's current economic indicator prices and how they affect fuel
The Rand is trading at 15.95 against the US Dollar due to it weakening recently, as a result of oil prices rising exponentially. In 2021 oil prices were the highest they have been in ten years, according to News24.
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Oil prices are predicted to increase even further in 2022, as countries come out of lockdown and the demand increases. Gas prices are expected to follow suit in the new year. On 5 January 2022, the new fuel prices will come into effect.
The current price of fuel, which sees people in some parts of South Africa paying over R20 for a litre of petrol, have broken national records. The Energy Department is yet to officially announce what next month's official fuel prices are.
Reactions to the predicted fuel price decrease
@Sta_Beer believes:
"Anything below 40% is not a fuel cut, stop playing with us."
@mattm_p remarked:
"Down 70c now, up by another R2 in no time."
@karlvanheerden1 said:
"Yeah, to soften the blow for the next massive increase."
@Tbos54697069 demanded:
"We want a R6 cut, not 76 cents."
@KingPhumEe believes:
"I'll only ever be excited the day petrol drops by like R5 or something."
Experts predict 'likely drop' of petrol from R20 a litre as relief on the cards for SA
Speaking of fuel price decreases, Briefly News previously reported that South African motorists were taken aback when the price of petrol shot up to above R20 a litre at the start of December. But relief may not be so far away after all as energy experts now foresee a likely drop in the fuel price.
The Department of Mineral Resources and Energy is expected to announce the new petrol price adjustment on 31 December 2021, making way for motorists to recover from the country's record fuel price hike that came into effect earlier in December after the rand weakened against the US Dollar.
Since then, the local currency has made significant inroads to regain some of its strength, having plummeted to R16.15 at the time of the steep hike. The current outlook means motorists can expect to cough up less than R20 for a litre of fuel at the start of the New Year 2022.
Source: Briefly News
