• Home
  • NEWS
  • SA prices on track for big cuts in January

SA prices on track for big cuts in January
The price of Brent crude oil traded close to US$83 a barrel at the start of December but has since fallen to around US$75. Photo Unsplash/Dawn Mcdonald

SA prices on track for big cuts in January

Based on the current oil, international fuel and rand prices, the latest data from the Central Energy Fund (CEF) shows that the price of 95 unleaded petrol could be cut by around 76c a litre in January.



Wholesale diesel prices could be lowered by around R1.34 to R1.41 a litre. “These decreases will go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans,” “ says the Automobile Association (AA).



“For many travellers who will be going on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys.”



However, there is still more than two weeks to go before the final prices are set. Fuel prices will only be adjusted on 3 January.



Brent



South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in US dollars.



The price of Brent crude oil traded close to US$83 a barrel at the start of December but has since fallen to around US$75.



Bloomberg reports that oil is now down by more than a quarter from a high reached in September on a surge in exports from non-OPEC countries and fears that fuel demand is worsening. A limping Chinese economy is a big concern.



“In addition, the market is skeptical whether deeper voluntary supply cuts by the Organisation of Petroleum Exporting Countries (OPEC) and its allies will be fully adhered to,” Bloomberg reports.



– Fin24



Advertisments

Currency: GBP to NAD 23.77 | EUR to NAD 20.52 | CNY to NAD 2.65 | USD to NAD 19.23 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.73 | ZWL to NAD 0.04 | BRL to NAD 3.7 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.4 | USD to AOA 832.83 | USD to BWP 13.88 | USD to EGP 48.03 | USD to KES 133.98 | USD to NGN 1230 | USD to ZAR 19.23 | USD to ZMW 25.8 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73551.13 Up +0.26% | Namibian Stock Exchange (NSX) Overall Index 1526.82 Down -0.34% | Casablanca Stock Exchange (CSE) MASI 13302.28 Down -1.12% | Egyptian Exchange (EGX) 30 Index 28144.22 Down -1.67% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 302.12/OZ DOWN -0.0136 | Copper US$ 4.39/lb DOWN -0.0158 | Zinc US$ 2 783.30/T DOWN -1.79% | Brent Crude Oil US$ 86.54/BBP DOWN -0.0073 | Platinum US$ 905.97/OZ DOWN -0.0162 |