R2 per litre petrol price relief in South Africa

Significant petrol price relief could be on the horizon in South Africa, while diesel drivers may be in for further price shocks when December’s official adjustments are announced.

This is according to the latest information from the Central Energy Fund (CEF), whose recovery data show that both petrol and diesel are showing over-recoveries.

While petrol’s recovery, coupled with the return of a portion of the General Fuel Levy (GFL), is enough to lower prices, diesel has not been so lucky.

National Treasury approved R10 billion in short-term relief for South Africa’s motorists, which allowed it to slash the GFL to shield motorists from skyrocketing fuel prices.

That said, that relief is being phased out, and next month 50c will be added back to every litre of petrol sold in South Africa, and R1.50 to every litre of diesel sold.

Without the reintroduction of fuel levies, petrol would be looking at reductions of between R2.25 and R2.54, depending on octane rating, and diesel would be reduced by between 27c and 62c per litre.

This comes after global Brent crude oil recorded the biggest weekly drop since April 2020 as traders weighed diplomatic efforts to end the US-Iran conflict against fresh attacks in the region.

Brent Crude fell to $97 per barrel after a 16% loss last week, coming down from a six-month high at the end of October.

Without considering South Africa’s fuel levies, these are CEF’s latest fuel price adjustment predictions at the start of December:

• Petrol 93 – decrease of R2.24 per litre
• Petrol 95 – decrease of R2.54 per litre
• Diesel 0.05% (wholesale) – decrease of R0.27 per litre
• Diesel 0.005% (wholesale) – decrease of R0.62 per litre

Unfortunately, 50c of the decrease in petrol prices will have to be knocked off to account for the return of a portion of the fuel levy, while R1.50 will be added back to the price of diesel.

As a result, petrol still looks likely to decrease, while diesel prices may very well trend in the opposite direction.

Below is a breakdown of what the CEF’s current recovery data could mean for next month’s inland petrol and diesel prices: