South African motorists can expect significant fuel price reductions to kick off 2024, says the Automobile Association (AA).

Commenting on unaudited data from the Central Energy Fund, the AA said both grades of petrol, diesel and illuminating paraffin prices are showing substantial decreases that will ease financial pressure on consumers in January.

“According to the data, ULP93 will decrease by about 68c/l and ULP95 by 82c/l. Diesel is set to decrease by about R1.50/l with illuminating paraffin declining by about R1.42/l. The forecast reductions in the wholesale price of diesel will bring this fuel cost down to about R20.32/l inland — lower than the same time last year,” said the AA.

The expected reductions can be attributed to significantly lower international product prices. While the rand has not been performing well against the US dollar, the data shows the movement of international product prices is playing the biggest role in the forecast reductions.

“These decreases will go a long way to alleviating the fuel price burden — and its associated effect on other prices — felt by millions of South Africans. For many travellers going on holiday this is also good news as it will reduce expenses on the return leg of their journeys,” said the association.