Expect a drop in petrol prices next week

South African motorists can expect mixed fortunes at the pumps in December, with the cost of petrol set to decrease while diesel prices are set to increase the Automobile Association (AA) says.

Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the AA said that petrol is slated to fall by around 27 cents a litre, while diesel’s price increase has been contained to around 13 cents a litre.

The biggest loser is illuminating paraffin, which is set for a 22 cents rise, bad news for those who use this fuel for cooking and lighting.

“International product prices of refined fuels spiked just before mid-month, but then pulled back. Petrol clawed back its losses to end in positive territory, while diesel swung further into negative territory,” the AA said.

The association said that the rand has put in an impressive performance against the US dollar during November, with the average exchange rate dipping into the R15.70 range in the last week of the month.

Apart from noting the firming average exchange rate, the AA said the daily rand/USD exchange rate, which fell as low as R15.15 to the dollar in the last week of November, is at its strongest level since February this year.

“The fly in the ointment is that the international price of refined fuels has trended upward over the last ten days, so here’s hoping it doesn’t spoil the party.

“It has been a long time since a stronger rand was able to come to the rescue of South African fuel users, and if the current trend continues, the country seems set for improved fuel price stability as we enter 2021,” it said.

This is how the changes could be reflected at the pumps:

Fuel (Inland) November Official December Expected
95 Petrol R14.59 R14.32
93 Petrol R14.39 R14.12
0.05% Diesel (wholesale) R12.25 R12.38
0.005% Diesel (wholesale) R12.27 R12.40
Illuminating Paraffin R6.55 R6.77

Read: How much it costs to drive 100km in South Africa’s most popular bakkies

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Expect a drop in petrol prices next week