South Africa Gears Up for December Fuel Price Increases
Get ready for a hit to your wallet! South African motorists are facing another round of fuel price increases in December. According to reports, both petrol and diesel prices are expected to rise next week.
Data from the Central Energy Fund (CEF), as reported by BusinessTech, indicates that under-recoveries persisted throughout November. The rise in global oil prices has outweighed the slight strengthening of the rand, leading to these projected increases.
What to Expect at the Pumps
The CEF projects an under-recovery of between 20c and 26c per litre for petrol. However, diesel users will feel a sharper pinch, with a shortfall of between 76c and 93c per litre.
Here's a breakdown of the projected adjustments for December:
- Petrol 93: +19c to +20c per litre
- Petrol 95: +24c to +26c per litre
- Diesel 0.05% (wholesale): +60c to +72c per litre
- Diesel 0.005% (wholesale): +77c to +89c per litre
- Illuminating paraffin: +68c per litre
While these increases follow welcome cuts in November (51c for petrol and 21c for diesel), the overall trend indicates rising fuel costs.
Why the Price Hikes?
Global oil prices have been volatile, averaging $64.14 per barrel in November. Factors contributing to this include shifting supply expectations and increased winter heating demand in the northern hemisphere, which tends to drive up diesel prices.
Although the rand briefly strengthened, providing some relief, it wasn't enough to offset the impact of rising international production costs.
Keep an eye on fuel prices and plan your budget accordingly! This December, South African motorists will need to dig a little deeper at the petrol station.