Good news about petrol prices in South Africa

Motorists in South Africa saw no relief at the fuel pumps this week with a meaningless 1c per litre petrol price cut, but things are looking better this December.

Earlier this week, the Department of Mineral and Petroleum Resources published the latest official fuel price adjustments, which took effect on Wednesday, 4 November.

Petrol was set to increase by roughly R1.50 per litre, but this increase was cancelled out by the government’s temporary relief measure, cutting the General Fuel Levy (GFL) by R1.50 per litre.

The good news is that petrol prices are set to come down in December, though diesel users won’t be as lucky.

Early data from the Central Energy Fund for the first week of November shows that petrol is experiencing an over-recovery, while diesel is experiencing an under-recovery.

Petrol is looking at a reduction of between R1.53 and R1.84 per litre, while diesel is facing a small hike of between R0.19 and R0.54 per litre.

This is mainly due to movements in the international oil price, as Brent Crude plummeted from $113 per barrel to $95 per barrel after the United States midterm elections, where the incumbent Republican Party experienced major losses.

These are the CEF’s latest fuel price adjustment predictions at the start of November:

• Petrol 93 – decrease of R1.53 per litre
• Petrol 95 – decrease of R1.84 per litre
• Diesel 0.05% (wholesale) – increase of R0.54 per litre
• Diesel 0.005% (wholesale) – increase of R0.19 per litre

Unfortunately, the government plans to reduce the fuel tax relief measure next month.

The petrol cut is falling to R1.00 per litre, meaning 50c will be added back to the final price, while the diesel cut is falling to R1.50 per litre, meaning R1.50 will be added back.

The following table shows how fuel prices will be affected in December after the fuel relief measures have been factored in: