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The current unaudited data from the Central Energy Fund (CEF) is indicating a mixed bag of increases and decreases to fuel prices for December 2022, according to the Automobile Association (AA).
The Association said that the data was showing significant increases in petrol prices of between 97 cents per litre and R1.09 per litre, but a decrease of up to 34 cents per litre for diesel next month. Illuminating paraffin is also expected to increase by around 30 cents per litre.
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The AA further explained that 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 stronger 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 to 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,” explained the AA.
Additionally, the association highlighted that it must be noted that these are mid-month figures and are likely to change before the final adjustment for December is made later in the month.
“However, increases to petrol prices are almost certain to happen while decreases to 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.”
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