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Fuel prices are anticipated to continue to ease into the new year thanks to lower oil prices and a stronger local currency that has been observed recently.
This comes as motorists have had to stomach nauseating fluctuations in fuel prices throughout the year, led by elevated oil prices and a volatile rand.
According to a research note released at the end of November, PwC’s latest economic outlook has forecast that the first three months of the new year should register lower fuel price averages in comparison to the last quarter of 2023.
“Following the fuel price declines in November and December 2023, both petrol and diesel prices are expected to bottom out in Q1 2024, and then slowly increase during the remaining quarters of 2024,” PwC South Africa chief economist Lullu Krugel said.
Inland motorists began 2023 paying R21.10 and R21.40 per litre of unleaded 93 and unleaded 95 petrol, respectively. While diesel users of 500ppm and 50ppm were paying R21.23 and R21.42 per litre respectively.
Although prices have since eased and, in some cases, edged closer to January prices, in-between now and then, motorists were met with volatility which was further fuelled by the escalation of geopolitical tensions in the Middle East.
In October, motorists were forced to stomach price peaks across various fuel types amid higher oil prices, influenced by the tightening of supply, increased average international petroleum product prices and a weaker rand/dollar exchange rate. — Moneyweb
Online Reporter