Diesel Price Shock: Brace Yourselves, South Africa!
South African motorists are in for a rude awakening this December as fuel prices are predicted to spike, with diesel taking the biggest hit. According to reports referencing Central Energy Fund (CEF) data, under-recoveries persisted throughout November, outweighing any benefit from a slightly stronger Rand. Buckle up, because your December budget is about to feel the pinch!
What's Driving the Increase?
Global oil prices are the primary culprit. Brent crude averaged $64.14 per barrel in November, fueled by fluctuating supply expectations and the rising demand for winter heating in the Northern Hemisphere. This demand disproportionately affects diesel prices, leading to the expected surge at the pumps.
How Much Will You Pay?
The CEF data paints a concerning picture:
- Petrol 93: Expected to rise by 19c to 20c per litre.
- Petrol 95: Anticipate an increase of 24c to 26c per litre.
- Diesel 0.05% (wholesale): Prepare for a significant jump of 60c to 72c per litre.
- Diesel 0.005% (wholesale): The steepest increase, projected at 77c to 89c per litre.
- Illuminating paraffin: Also facing a hike of 68c per litre.
Rand's Limited Relief
While the Rand briefly strengthened, it offered only marginal relief. Exchange-rate gains contributed a positive over-recovery of about 4c per litre, but this was quickly overshadowed by the larger under-recovery caused by soaring international product prices.
Looking Ahead
While petrol prices remain slightly lower than at the start of the year, diesel continues its upward trend. Prepare to adjust your budgets accordingly, as the December fuel price hikes are poised to impact transportation costs and consumer prices across the board.