South Africans are preparing for a mixed adjustment in fuel prices this December, influenced by international oil trends and a fluctuating rand. According to mid-month predictions by the Central Energy Fund (CEF), petrol prices are expected to drop slightly, while diesel and illuminating paraffin costs are likely to rise.
The Central Energy Fund (CEF) has confirmed the following changes:
- Petrol 93: Decrease of 13 cents per litre.
- Petrol 95: Decrease of 1 cent per litre.
- Diesel 0.05%: Increase of 44 cents per litre.
- Diesel 0.005%: Increase of 43 cents per litre.
- Illuminating Paraffin: Increase of 41 cents per litre.
Key Factors Impacting Prices:
- Weakening Rand: Dropped against the dollar amid U.S. economic strength.
- Oil Price Volatility: Global oil fluctuations add to the increases.
- Local Economic Pressures: SARB rate decisions may introduce more volatility.
These reductions reflect an over-recovery in international petrol prices, driven by stabilizing global oil costs after a volatile period in early November.
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Diesel and Paraffin: Costs on the Rise:
- Diesel 0.05% is projected to increase by 38 cents per litre.
- Diesel 0.005% could rise by 36 cents per litre.
- Illuminating paraffin may go up by 38 cents per litre.
The increases are largely attributed to under-recoveries in diesel prices due to global oil fluctuations and the rand’s depreciation against the US dollar.
Key Market Influences:
The rand weakened throughout November, averaging R17.66 to the US dollar by mid-month, driven by global economic factors like U.S. policy shifts and geopolitical uncertainties. Meanwhile, oil prices fluctuated, starting the month at $73.16 per barrel and stabilizing near $72.28 per barrel by mid-November.
The Department of Mineral Resources and Energy (DMRE) will confirm the official fuel price changes at the end of November, with adjustments implemented on December 6. Motorists should remain updated, as changes in levies or margins could still affect the final rates.
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