Logistics fleet owners could be in for an early Christmas bonus as the price of diesel could drop further in December if the current oil price trajectory continues downwards, according to the latest data released by the Central Energy Fund (CEF) this week.
CEF daily data, which gives a snapshot of fuel price trends, indicates that the diesel price could decrease by R1.80 to R2 per litre in December.
And while it is still early in the month and the price of petrol is more difficult to forecast due to the huge difference between early month data and the latest trends, it could also drop in price by between 80 cents and R1.20 if current market conditions prevail.
The CEF data released on November 9 currently indicates an over recovery of between R199 and R204 in the price of diesel and over recoveries of R123 and R119 in the price of 95 petrol and 93 petrol respectively.
According to Reuters, oil prices fell more than 4% on Tuesday to their lowest since late July, as mixed Chinese economic data and rising Organization of Petroleum Exporting Countries (Opec) exports eased fears about tight markets as the dollar strengthened.
Brent Crude futures closed below $84 a barrel for the first time since Hamas Islamists' October 7 attack on Israel. The global benchmark settled at $81.61 a barrel, down $3.57, or 4.2%, while US West Texas Intermediate crude futures settled at $77.37 a barrel, down $3.45, or 4.3%.
The price of diesel in South Africa rose by R5.40 between August and October before decreasing by 85 cents in November. The current price of diesel is R24.16 (0.05 c/l) and R24.40 (0.005 c/l) in Gauteng, and R23.44 (0.05 c/l) and R24.68 (0.005 c/l) at the coast, while the price of unleaded 95 petrol costs R23.90 inland and R23.18 in coastal regions.
