South African motorists face a mixed outlook for December fuel prices with petrol prices set to climb slightly while diesel and illuminating paraffin costs are set for larger increases.
Several factors are against motorists in the final month of 2024 as the rand weakens against the dollar and global oil prices continue to climb.
December 2024 Petrol Price Prediction
According to the latest data from the Central Energy Fund (CEF), unleaded 93 remains the only fuel type projected to decrease, with an anticipated drop of approximately 10 cents per litre.
However, Unleaded 95 has flipped from an earlier positive forecast to an under-recovery, suggesting a 2-cent increase per litre.
Diesel and Illuminating Paraffin
Diesel prices are expected to increase by around 40 cents per litre for both 0.05% and 0.005% grades. Illuminating paraffin is also projected to rise by 43 cents per litre, further adding to the strain for consumers during the festive season.
Here is a breakdown of the anticipated changes:
- Petrol 93: Decrease of 10 cents per litre
- Petrol 95: Increase of 2 cents per litre
- Diesel 0.05% (wholesale): Increase of 47 cents per litre
- Diesel 0.005% (wholesale): Increase of 47 cents per litre
- Illuminating paraffin: Increase of 43 cents per litre
Economic Factors
The volatility in fuel pricing is largely attributed to a weaker rand and elevated global oil prices.
Although the rand has recovered slightly from its November peak of R18.60 to the dollar, it remains above the R18.00 mark, the R17.05 seen in earlier months.
The Reserve Bank’s recent 25 basis point rate cut has worked in the favour of consumers.
Mid-Month Projections
The Automobile Association (AA) has confirmed the mid-month estimates. They explained that the petrol price is influenced by declining international oil prices while diesel and illuminating paraffin continue to trend upward.
It’s important to remember that these projections are based on unaudited mid-month data, and the final adjustments could still change.
Official price adjustments for December are expected to be announced at the end of November and will take effect on December 4.
The AA also urged motorists to prepare their vehicles for the holiday season, emphasizing road safety and vehicle maintenance ahead of long trips.
Planning for long journeys during the December break should start now.
