Here is the expected price of gasoline for January 2021

The Central Energy Fund has released its fuel price data in the middle of the month, which points to an increase in gasoline and diesel prices for January 2021.

CEF data shows insufficient recovery across the board, with prices expected to rise 30-33 cents per liter for diesel and 51-52 cents per liter for diesel.

• Gasoline 95: increase of 30 cents per liter;
• Gasoline 93: increase of 34 cents per liter;
• Diesel 0.05%: increase of 52 cents per liter;
• Diesel 0.005%: increase of 51 cents per liter;
• Illuminating paraffin: increase of 52 cents per liter.

While the mid-month data serves as a snapshot, the Department of Energy makes adjustments based on a full-period review. Also, the outlook can change significantly before the end of the month.

Price changes are adjusted so that the excessive or insufficient recovery during the previous month is corrected in the following month; over or under recoveries are rounded up or down to the nearest full cent, so that the effect of rounding contributes to offsetting the cumulative balance of individual products on the list.

However, mid-month prices provide a strong indication of moving trends. Prices are affected by two main components: the rand / dollar exchange rate and changes in the international costs of petroleum products, largely driven by oil prices.

Exchange rate

The rand has performed particularly well against the US dollar in the first weeks of December, with better-than-expected third-quarter GDP data working on positive global sentiment on the launch of Covid-19 vaccines.

The Covid-19 factor remains significant, as European nations re-enter the hard lockdown boosting the rand, yet the threat of local restrictions that slow the economic recovery remains great.

President Cyril Ramaphosa announced Monday night that certain new national restrictions will go into effect during the holiday season, which will result in the alcohol trade being restricted and beaches and parks in popular tourist areas closed during business hours. increased activity.

However, most of the economy was not affected. This kept the rand within a tight trading range, around the R15.00 to R15.10 mark.

Meanwhile, hopes of economic recovery on a global scale have been pinned on a series of Covid-19 vaccines that are expected to begin implementation soon. The first doses of the vaccine have already been released in the United States, while South Africa will have to wait until early next year in January, according to President Ramaphosa.

International product prices

Any gains that South African fuel prices have made from a stronger rand have been outweighed by a steady rise in international prices for both gasoline and diesel products.

Since the beginning of the month, these prices have continued to rise above 100 cents a gallon, driven primarily by rising oil prices.

After significant drops in the price of oil near the end of October, as low as $ 38 a barrel, international prices have risen again to $ 50 a barrel for Brent crude.

Bloomberg reported that oil has fallen from a nine-month high on concerns that more pandemic lockdowns could slow a global rebound in demand for fuel.

Expected changes

Here’s how current prices would be reflected on the pumps:

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