December’s fuel price adjustments are looking like a mixed bag, according to the most recent data from the Central Energy Fund (CEF).
The entity predicts that petrol will see a decrease of anywhere from 7c per litre to an increase of 3c per litre, depending on the grade.
Meanwhile, diesel is expected to climb by a minimum of 47c per litre across the board.
December downer
December’s anticipated hikes come off the back of an increase in international petroleum product prices during November coupled with a depreciating rand/US dollar exchange rate.
At the start of November, Brent Crude oil swapped hands for $73.10/barrel, shooting up to a high of $75.63/barrel by the 7th.
The black gold fell back down to $71.04/barrel on 15 November, climbed once again to $75.17 by the 22nd, and finally settled at $72.83/barrel on the 27th.
The sharp movements saw an over-recovery in domestic petrol prices of 18-28c per litre and an under-recovery in diesel prices of 24-25c per litre.
Similarly, the rand traded around R17.63/dollar on 1 November and reached a low of R17.52/dollar by the 8th, after which it shot up to an average of R17.90/dollar by the 27th.
The devaluation saw an under-recovery in local fuel prices of 21c per litre for petrol and 23c per litre for diesel.
Based on these inputs, fuel prices in South Africa in December are expected to be adjusted as follows:
- Petrol 93 – Decrease of 7c a litre
- Petrol 95 – Increase of 3c a litre
- Diesel 0.05% – Increase of 47c a litre
- Diesel 0.005% – Increase of 48c a litre
It must be noted that these predictions are not the official changes that will be made by the Department of Energy this Wednesday, which may be higher or lower as they also take into account any potential changes in the Slate Levy, taxes, transport costs, or wholesale and retail margins.
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