The trucking industry will breath a sigh of relief after diesel prices dropped by between R1.52 and R1.57 per litre today, December 7, 2022.
The Central Energy Fund announced the good news for diesel users after months of steep increases that saw diesel prices surge to record highs.
The decrease brings some relief for consumers during the festive season.
The Gauteng price of diesel, which reached a new record high (R25.49) in October, will fall to R23.92 a litre.
Petrol users, however, will have to pay 50 cents more for a litre of petrol.
In Gauteng, 95 petrol now costs R23.46 a litre, compared to R20.29 a year ago – but down from a peak of R26.74 in July.
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“Petrol prices increased due to higher demand by motorists travelling for the Thanksgiving season in the US amid limited supply emanating from the Russia-Ukraine conflict. Increased demand resulted in a decrease of gasoline inventories and higher prices,” the department said.
“Refiners are producing more middle distillates, such as diesel, illuminating paraffin and gas to meet extra winter demand in the Northern Hemisphere and consequently producing less petrol.”
The cost of paraffin will decrease by almost R2 per litre but gas will cost 76 cents less per kilogram this month.
The Mineral Resources Department’s Robert Make said that one of the factors that contributed to these price changes was the local currency.
“This is due to lower oil prices and stronger rand during the period under review. The annual adjustment of all the industry margins using the regulatory accounting system methodology.”
The rand strengthened from an average of R18.11/$ in October to R17.43 in November, while the average Brent oil price fell from $90.79 to $88.77 per barrel.
