December fuel price outlook - good news for petrol, bad news for diesel
Your December road trip could be a little cheaper if you have a petrol-powered vehicle, with early data pointing to a decrease next month.
The latest snapshot from the Central Energy Fund (CEF) shows a small over-recovery has developed for petrol, which could result in a decrease in the region of 20 to 30 cents if current trends persist.
Diesel on the other hand could see an increase of more than 30 cents due to an under-recovery having developed in the first 10 days of the month, albeit a shrinking one.
If current oil price and currency trends continue until month-end, petrol prices could return to where they were in October, their lowest level since February 2022, with 95 Unleaded having cost R20.26 at the coast and 93 Unleaded listed at R20.73 inland. Petrol increased by 25 cents at the beginning of November, and diesel by 20 cents.
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Much can still transpire between now and the end of November, when the official fuel prices for December will be finalised by the Department of Mineral Resources and Energy.
However, at this stage it appears that any price movements will be minimal, which is good news for general inflation, and your holiday travel plans.
The current price outlook is primarily determined by international product prices, with petrol costs having receded and diesel prices having risen. The currency is currently having a negative effect to the tune of just one cent on the fuel price equation.
However there is hope of a growing over-recovery for petrol, with Brent Crude oil having reached its lowest level this month on November 11, at $71.70 per barrel (R1,278), down from a month-high of $75.63 on November 7. Brent Crude averaged $75 in October, thus any movements below that level, assuming the rand remains stable, is good news for the fuel price outlook.
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