As December 2024 approaches, South African motorists are closely watching the expected changes in fuel prices. While some drivers can look forward to a decrease in petrol prices, others, particularly those relying on diesel, may face an increase. This article explores the projected fuel price changes, factors influencing them, and what it means for South African motorists.
Expected Petrol Price Changes for December 2024
According to the latest data from the Central Energy Fund (CEF), the following changes in fuel prices are expected for December 2024:
| Fuel Type | Expected Price Change |
|---|---|
| Petrol 93 Octane | Decrease of 16 cents |
| Petrol 95 Octane | Decrease of 4 cents |
| Diesel 0.05% Sulfur | Increase of 39 cents |
| Diesel 0.005% Sulfur | Increase of 38 cents |
| Illuminating Paraffin | Increase of 39 cents |
As seen from the table, petrol prices for both 93 and 95 octane are expected to decrease slightly, while diesel and illuminating paraffin prices will rise. Specifically, petrol 93 octane may drop by 16 cents per litre, while petrol 95 octane may decrease by 4 cents per litre. Diesel users, however, could see an increase of around 38-39 cents per litre.
Factors Affecting Fuel Prices
The changes in fuel prices are primarily driven by two major factors:
- International Oil Prices
The price of crude oil is a key factor in determining local fuel costs. As of mid-November 2024, Brent crude oil is priced at $71.44 per barrel. Global economic trends, geopolitical tensions, and decisions made by key oil-producing countries significantly influence oil prices. - Rand/Dollar Exchange Rate
Since South Africa imports much of its crude oil, the exchange rate between the South African rand and the US dollar plays an important role in determining fuel prices. Currently, the rand is trading at R18.09 per US dollar. A weaker rand typically results in higher import costs, which can push fuel prices up locally.
Comparison of Current Fuel Prices with November 2024
To give a clearer picture of the impact of the projected changes, here is a comparison between the fuel prices expected in December and those recorded in November 2024:
| Region | Fuel Type | November 2024 Price (R per litre) |
|---|---|---|
| Inland | Petrol 93 Octane | R20.98 |
| Petrol 95 Octane | R21.30 | |
| Diesel 0.05% Sulfur | R18.66 | |
| Diesel 0.005% Sulfur | R18.77 | |
| Illuminating Paraffin | R12.87 | |
| Coastal | Petrol 93 Octane | R20.19 |
| Petrol 95 Octane | R20.51 | |
| Diesel 0.05% Sulfur | R17.87 | |
| Diesel 0.005% Sulfur | R18.01 | |
| Illuminating Paraffin | R11.87 |
The projected drop in petrol prices will offer some relief for motorists in December, especially compared to the higher prices seen in November. However, the increases in diesel and illuminating paraffin prices will continue to strain sectors that rely on these fuels, such as logistics and agriculture.
What the Price Adjustments Mean for Motorists
The upcoming adjustments in fuel prices reflect the ongoing volatility in both international oil prices and the rand/dollar exchange rate. While petrol users may enjoy a slight decrease in December, the increase in diesel and illuminating paraffin prices will still affect many consumers. The higher costs for diesel could pose challenges for industries reliant on fuel for transportation and operations.
Motorists should remain vigilant about these changes and consider adjusting their budgets accordingly, as fuel prices remain a key factor influencing the overall cost of living. With the dynamic nature of fuel prices, it is essential to stay informed about fluctuations that can directly impact household and business expenses.
