FOLLOWING months of steep increases that have seen diesel prices surge to record highs, some relief is on the cards for December, but petrol is still looking set for a small increase.
According to unaudited month-end data released by the Central Energy Fund, 95-Unleaded petrol is looking set to go up by around 27 cents per litre while 93-Unleaded should see an increase in the region of 18 cents. Diesel on the other hand is expected to come down substantially, with the data indicating a drop of R1.66 for 500ppm and R1.62 for 50ppm.
Keep in mind that these estimations are based on unaudited data and official prices have yet to be announced by the Department of Energy.
A 27 cent increase would see the price of 95-Unleaded petrol rising to around R22.49 at the coast and R23.14 in the inland regions. The wholesale price of 50ppm diesel is expected to drop to around R23.50 at the coast and R24.10 inland, although retail prices at fuel stations will be somewhat higher than that as diesel is unregulated.
The good news is that the lower international oil prices that we’re seeing now could translate into further decreases of up to R1 per litre for both petrol and diesel in January if current rand and oil price trends continue through December. That is a big if, however.
The Automobile Association says that although December’s diesel price decrease is welcome, a re-evaluation of the country’s fuel price structure is needed.
“The rand’s positive movement is certainly aiding consumers without which the outlook may have been gloomier,” the AA said. “Going forward, though, we will continue to call for a re-evaluation of the fuel pricing structure to provide more longer-lasting solutions to mitigate against rising fuel costs.
“A review of the fuel price must examine all the components that comprise a litre of fuel, establish their continued relevance as part of the fuel price, and determine if the calculations used are still correct. As we have said before, we believe such a review is long overdue and the longer government delays in getting this started, the longer it will take to find sustainable solutions,” the association added.