South Africans brace for fuel price changes in December

South African motorists can expect mixed news in December, with petrol prices likely to drop while diesel costs rise. According to mid-month data from the Central Energy Fund (CEF), petrol could decrease by up to 16 cents per litre, providing much-needed relief for drivers. However, diesel users may face increases of up to 38 cents per litre, putting pressure on logistics and transport-dependent industries.

The disparity stems from erratic oil price movements in early November. Brent Crude oil peaked at $75.63 per barrel on November 7, following Donald Trump’s U.S. presidential election victory. Expectations of business-friendly policies initially boosted oil prices. However, concerns over potential trade tariffs and increased OPEC supply reversed those gains, with prices falling to $72.28 per barrel by November 13.

Fluctuating global petrol prices resulted in an over-recovery for domestic petrol costs, ranging from 13 to 23 cents per litre, depending on the grade. In contrast, diesel prices experienced an under-recovery of 28 to 30 cents per litre. A slight weakening of the rand against the dollar added another 7 to 8 cents per litre across all fuel types. The rand depreciated from R17.52 to R17.66 during this period, as concerns over U.S. policies further strained emerging market currencies.

If these trends hold, December could see the following adjustments: Petrol 93 may drop by 16 cents per litre, while Petrol 95 could fall by 5 cents. Diesel users, however, face increases of 36 to 38 cents per litre, depending on the grade. These predictions are preliminary and may change when the Department of Energy announces official adjustments, accounting for taxes, levies, and other costs.

For South Africans, the mixed fuel forecast highlights ongoing global economic uncertainty, underscoring the importance of strategic budgeting for both households and businesses as the year winds down.

Read more on Fuel relief: South African motorists save big as petrol prices fall