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Slight petrol price relief expected for new year

JOHANNESBURG – Motorists could expect some petrol price relief at the petrol pumps in the new year, with the news that the price of petrol could drop by about 7,8 cents per litre while the diesel price could come down by around 7,1 cents per litre in January.

That is according to the latest figures from the Department of Energy.

It comes after the petrol price increased by 71 cents a litre while the diesel price was hiked by 60 cents per litre at the beginning of December, putting a dampener on festive spirits.

Despite an increase in international crude oil prices, the rand strengthened over the same period over general expectations that Cyril Ramaphosa will be elected to replace Jacob Zuma as ANC leader, said independent economist, Fanie Brink.

“The work on one of the most important oil pipelines in the world, the North Sea oil pipeline, which will take two weeks to repair a crack, has put pressure on the Brent crude oil price. The members of the Organisation for Petroleum Exporting Countries also decided two weeks ago to extend their agreement to reduce their production further from April next year until the end of 2018,” Brink said.

This could push the international crude oil price up even higher, meaning the average international fuel price could increase by 16 cents per litre in January and the diesel price by 17,7 cents per litre.

The final fuel price change will be announced by the Energy Department at the end of the month.