The Department of Energy has projected a drop in the petrol price by as much as R1.03 a litre, on 7 January 2015.
The retail price of 95-grade petrol in South Africa fell by 69 cents a litre on 3 December. A R1.03 fall would send the fuel price to its lowest level since August 2012, having peaked at a record R14.39 a litre earlier this year.
Azar Jammine, chief economist at Econometrix, forecast a drop of between 90 cents and R1.00 a litre in January, according to Business Report.
The economist factored in falling crude oil prices, to below $60 a barrel, however, a weaker rand against the greenback could counteract the oil price movement in terms of the local fuel price.
On Wednesday morning (17 December), the rand was bid at R11.70 against the dollar.
“Things can change a lot between now and the end of the month,” Jammine said.