Fuel Prices Set to Drop in February, Says Energy Fund

Motorists can expect a welcome drop in fuel prices in February, according to the latest Central Energy Fund (CEF) data.

Petrol is projected to decrease by 66 to 69 cents per litre, while diesel could fall by 63 to 71 cents per litre. Illuminating paraffin is also expected to drop by 60 cents per litre.

The reductions are smaller than earlier estimates, largely due to global oil price volatility linked to recent geopolitical tensions. However, a stronger rand – trading around R16.09 to the US dollar – has helped cushion the impact.

The rand’s strength is attributed to South Africa’s recent removal from the FATF grey list, a credit ratings upgrade, and improved domestic growth prospects. Global oil prices are still expected to trend downward later in the year due to increased supply.

The official fuel price adjustment will be confirmed by the Department of Mineral Resources and Energy early next month.