File picture: Ayanda Ndamane/African News Agency (ANA)
SOUTH African motorists are facing a higher-than-expected petrol price increase for December, but the good news is that diesel is coming down by a significant margin.
The Department of Mineral Resources and Energy (DMRE) has announced the fuel price adjustments for this month, confirming that both grades of petrol would go up by 59 cents a litre while diesel would come down to the tune of R1.59 in the case of 500ppm and R1.52 for 50ppm. Illuminating paraffin sees a 57 cent decrease.
After Wednesday, December 7, a litre of 95 Unleaded petrol will cost you R22.81 at the coast and R23.46 in the inland regions, and 93 Unleaded will retail for R23.16.
Putting 35 litres into the tank of a small car like a Volkswagen Polo will cost an extra R20.65 in December, while 50 litres in a medium-sized car, like a Toyota Corolla, will set you back a further R29.50.
But some significant savings are on the cards for those with diesel vehicles, as refuelling a bakkie or SUV with 70 litres will save R106.40.
December’s decrease will bring the wholesale price of 50ppm diesel down to R23.59 at the coast and R24.22 inland, but keep in mind that retail prices will be somewhat higher than that and will differ between outlets as diesel is unregulated.
Petrol increase higher than expected
While unaudited data released late in November had pointed to a petrol price decrease of less than 30 cents, other factors have come into play. According to the DMRE, an increase in fuel industry margins, applicable from December 7, have added 21 cents to the equation, while a negative Slate Levy for the month adds a further 13 cents a litre. The Slate Levy was designed to reimburse fuel companies for the imbalances caused by fluctuating international oil prices in the preceding month.
Diesel historically expensive
With diesel prices being at record highs, the December decrease cannot come too soon, but it might be a case of too little too late, according to the AA.
“The decrease to diesel and paraffin prices is encouraging. Diesel is a major input cost in many sectors and the decrease to this fuel cost is positive for all consumers,” the AA noted.
“While positive, the suggested retail price of diesel in December will still be around R6.20 cents a litre more expensive than it was in January, which will have resulted in higher prices to goods and services during 2022.”