Here is the expected petrol price for January 2016
South African motorists are set to feel the first direct impacts of the unexpected removal of Finance Minister Nhlanhla Nene, and the resulting exchange rate chaos.
This is according to the Automobile Association (AA), following a week in which two new finance ministers were appointed by president Jacob Zuma.
The president announced last Wednesday, that Nhlanhla Nene would be replaced by ANC MP David van Rooyen. However, Zuma was forced to recall the unknown van Rooyen, and replace him with former finance minister, Pravin Gordhan, on Sunday evening.
The reshuffling of the country’s head of finance sent markets tumbling, while the rand crashed to its worst ever levels against the US dollar.
Gordhan’s appointment has however brought some relief, with the rand settling at around R15.00 to the greenback, having touched R16.00 late on Wednesday.
Commenting on unaudited fuel price data released by the Central Energy Fund (CEF), the AA noted that the petrol price is expected to be largely unchanged in January (using current rates), but diesel is due for a substantial drop of up to 50 cents a litre.
Illuminating paraffin, according to the AA, is down by 43 cents.
The AA said that without the current Rand weakness, these drops would have been up to 20 cents higher.
“Although the rand has recovered some of its losses, the current flattering fuel price picture is solely due to continued weak oil prices. We can therefore be grateful that oil prices remain weak, and that the rand recovered some ground following the re-appointment of Pravin Gordhan as Finance Minister on Sunday,” the AA said.
“However, we are cautious of pinning our hopes on further drops in the oil price, especially since the month still has 15 days to run. We don’t think the rand’s recent weakness has yet been fully reflected in the fuel price, and if oil prices tick up, the results could make for a very bleak new year for South African motorists and commuters,” the AA said.
“We advise motorists to moderate their expectations of a fuel price drop in January.”
Oil traded at around $36 per barrel on Tuesday.
| Month | 93 ULP Price | Change (cents) | 95 ULP Price | Change (cents) | Diesel 0.05% Sulphur Price | Change (cents) |
|---|---|---|---|---|---|---|
| January | R11.02 | -123 | R11.24 | -123 | R10.28 | -104 |
| February | R10.09 | -93 | R10.31 | -93 | R9.26 | -102 |
| March | R11.05 | +96 | R11.27 | +96 | R10.00 | +74 |
| April | R12.61 | +156 | R12.89 | +162 | R11.23 | +123 |
| May | R12.61 | 0 | R12.89 | 0 | R11.18 | -5 |
| June | R13.08 | +47 | R13.36 | +47 | R11.67 | +49 |
| July | R13.52 | +44 | R13.77 | +41 | R11.71 | +4 |
| August | R13.01 | -51 | R13.16 | -61 | R10.95 | -76 |
| September | R12.32 | -69 | R12.57 | -69 | R10.41 | -54 |
| October | R12.30 | -2 | R12.61 | +4 | R10.94 | +53 |
| November | R12.08 | -22 | R12.39 | -22 | R10.85 | -9 |
| December | R12.09 | +1 | R12.40 | +1 | R10.81 | -4 |
| Jan/Dec difference | +R1.07 | +R1.16 | +R0.53 |
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