Consumers are getting some relief early in the new year with fuel prices set to fall on Wednesday.

The Central Energy Fund (CEF) announced on Monday that the retail price of petrol (93) will be cut by 71 cents a litre, while 95 will decrease by 68c.

The wholesale price of diesel (0.05% sulphur) will be lowered by 67.8c a litre and 0.005% by 69.8c.

The wholesale price of illuminating paraffin will decrease by 71c a litre.

Local fuel prices are determined by international oil prices - as well as the dollar-rand value, as South Africa buys oil in dollar.

The CEF pointed out that the average international product prices for petrol, diesel and illuminating paraffin decreased during the period under review.

The rand weakened from R15.39$ to R15.74 over the past month.

The price of 95 petrol in Gauteng rose by 37% - from R14.86/l to R20.29 - in 2021. This was mainly due to rocketing oil prices.

In 2021, the price of oil saw its biggest annual gain in more than a decade, Bloomberg reported. This was thanks to accelerating economic growth and fuel demand, as lockdowns were downgraded across the world.

"Additionally, surging natural gas prices spurred greater demand for oil-derived products while OPEC+ continues to only drip-feed additional supplies onto the market," Bloomberg reported. Goldman Sachs forecasts further gains in oil prices in 2022.