Diesel prices will come down by at least R1,70 in December if international oil prices remain at their current levels and the rand continues with its recovery against the greenback, this is according to the latest unaudited data released by the Central Energy Fund (CEF) this week.
International Brent Crude oil prices dropped from $96 a barrel to around $84, at the time of writing, and the rand has strengthened from R17.34 to R17.16.
According to the CEF data, the daily petrol price data got back into the green with over-recoveries in the region of 50 cents a day.
Petrol users will fork out 62 cents a litre more for 95 Unleaded petrol and 52 cents for 93 ULP. However, if the rand maintains its recovery and oil prices remain at current levels until the end of the month, it’s possible the price increases will fall below 30 cents.
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For diesel prices, the monthly average points to a decrease of R1.12 for 500ppm and R1.05 for 50ppm. However, with the latest unaudited daily data showing an over-recovery in the region of R3, the price fall could be R1.70 or more if international prices remain at their current level.
A big price decrease in December will see a further price cut for January which would also harness the general inflation.
These fuel price forecasts could change between now and the end of November if there is significant movement in the rand/dollar rate and international oil prices.
South Africans will be hoping that no significant downward movement affects both factors.
Currently, motorists at the coast are paying R22.22 for a litre of 95 Unleaded petrol and R22.87 inland, where 93 ULP costs R22.57. The coastal wholesale price of unregulated diesel is pegged at R25.11 while inland it’s R25.74, but at the pump, prices are somewhat higher than that and differ between outlets.
