Petrol price set to increase in December

Solidarity says that it is likely that the Department of Energy will increase the price of petrol in December, albeit marginally.

On Thursday, the Automobile Association (AA) predicted a drop of approximately six cents a litre for unleaded 95, and two cents a litre for 93, next Wednesday, 2 December.

The association used data from the Central Energy Fund (CEF).

Read: Here is the expected petrol price for December

“Based on historical figures, it is more likely that the price of petrol – both grades – will increase by about five cents to seven cents in December and not decrease,” said Solidarity senior researcher, Paul Joubert.

For diesel the likely scenario is a price that is virtually unchanged, and for IP the likely scenario is a small increase, Joubert said.

Ther rand came under renewed pressure this week, trading at R14.33 against the greenback in morning trade on Friday.

“It is likely that the Department of Energy will make adjustments to certain margins on the fuel prices, which will eat into the decrease of six cents for petrol (both grades) that otherwise would take place in December,” Joubert said.

“The amounts by which the Department will increase these margins cannot be predicted in advance, but it is likely that they will increase these margins.”

“The weakening rand has yet again seen South African motorists miss out on substantial drops in international oil prices,” the AA said.

“Almost 60 cents a litre in price relief has been lost to the rand in the past two months.”

Fuel prices are set to show only slight declines at month end, as the benefits of the retreating oil price continue to be offset by a weaker rand.

Solidarity’s Joubert said that differentiated increases between 95 and 93 octane only occur in four months of the year, namely January, April, July and October, with exceptions to this rule only in very exceptional circumstances.

Petrol prices in November 2015

Fuel Decrease in cents Inland Price Coastal Price
93 Petrol  22 R12.08
95 Petrol  22 R12.39 R11.96
0.05% Diesel  9 R10.84 R10.52
0.005% Diesel  10 R10.90 R10.57
Illuminating Paraffin (Wholesale) 3 R7.09 R7.09

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Petrol price set to increase in December