Motorists can expect significant fuel price reductions at the start of 2023, says the Automobile Association (AA).

Commenting on data from the Central Energy Fund (CEF), the AA says the prices of both grades of petrol, diesel and illuminating paraffin will see substantial decreases on Wednesday.

Petrol and illuminating paraffin will decrease by about R2 a litre, while diesel will come down by about R2.70.

"[The] prices are close to those last seen in March. These reductions are certainly good news for all consumers and signal a positive start to fuel pricing for the new year,” said the AA.

According to the CEF, the reductions are a result of a stronger average rand/dollar exchange rate, and significant decreases to international product prices. While the stronger rand is contributing to the decreases, the data shows the movement in  international product prices is playing the most substantial role in the forecast fuel price reductions.

“These decreases will not take fuel prices to levels seen in January 2022 but will, nonetheless, go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans. For many travellers who are currently on vacation this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” concludes the association.

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