Here’s what you’re likely to pay for petrol and diesel in December

Indications are that there won’t be any fuel price relief to look forward to in December, with possible price hikes for both petrol and diesel predicted.

Although unaudited data from the Central Energy Fund (CEF) points to a possible petrol price decrease of around seven cents per litre for 93 Unleaded and a small increase of three cents for 95 Unleaded, the Automobile Association (AA) warns that the anticipated increase in industry margins could result in both grades increasing in price.

Nonetheless, petrol prices are unlikely to stray too far from the current levels of R20.51 at the coast and R21.31 in Gauteng, where 93 Unleaded is pegged at R20.98.

Diesel, meanwhile, looks set to increase by 48 cents or more, while illuminating paraffin is likely to increase by around 43 cents per litre.

The revised industry margins, which apply at storage, distribution, wholesale and retail levels, will become known when the Department of Mineral Resources and Energy (DMRE) announces the official fuel price adjustments ahead of implementation on Wednesday, December 4.

The mixed outlook for fuel prices can be attributed to fluctuations in the international product prices of unleaded fuel since mid-November, the AA said, while the depreciation of the rand following Donald Trump’s US election victory also contributed to the outlook turning negative.

The increase in diesel prices, furthermore, will have an impact on general inflation as higher input costs inevitably lead to inflation at retail level.

Diesel went up by 20 cents in November, while petrol was hiked by 25 cents.

At this stage there is no indication of when the government will conduct a review of the current fuel price structure, as promised by President Cyril Ramaphosa following the formation of the Government of National Unity.

IOL