Current unaudited data released by the Central Energy Fund (CEF) indicates a mixed bag of increases and decreases in fuel prices, with some relief for logistics firm owners in December.
According to the Automobile Association (AA), the latest CEF data suggests that there will be significant increases in the price of petrol - between 97c/litre and R1.09/litre - but a decrease of up to 34c/litre in the diesel price next month. Illuminating paraffin is also expected to increase by around 30c/litre.
According to the data, the average upward movement in international product prices is the main driver behind the increase in petrol prices, while the slight downward trend in international diesel product prices is having the reverse impact on this fuel. The rand is performing more strongly against the US dollar in daily trading, especially since the second week of November, which is having a positive impact on fuel prices.
“With these expected increases to petrol, the price of a litre of 95ULP, for instance, will climb to just under R24/l, which will be way below the high of R26.74/l seen in July, but which will still be higher than September, October, and November prices. The decrease in diesel is, of course, welcome and should, at least, not immediately negatively impact other prices reliant on diesel as an input cost. Of course, the increase to illuminating paraffin remains a concern as it will affect the poor most,” the AA said.
However, it added that these mid-month figures were likely to change before the final adjustment for December is made later in the month.
“However, increases in petrol prices are almost certain to happen, while decreases in diesel are also almost a certainty. Given that many people will be travelling by vehicle in December, we advise motorists to carefully plan their budgets now to ensure they have the necessary funds to cover their expenses, which may also include toll fees on certain routes.”
