Daily snapshot data for LP Gas is not presented by the CEF.<\/p>\n\n\n\n
The Department of Mineral Resources and Energy (DMRE) has noted that its daily snapshots are not predictive and do not encompass other possible modifications, such as slate levy adjustments or retail margin changes. The department determines these adjustments, considering various factors, at the end of the month.<\/p>\n\n\n\n
Domestic fuel costs are primarily governed by the rand\/dollar exchange rate and international oil prices. In South Africa, the fuel price is adjusted on the first Wednesday of every month based on these two factors.<\/p>\n\n\n\n
For December, lower oil prices have been working in the favour of lower prices, while a moderately stronger rand has also been adding to the over-recovery.<\/p>\n\n\n\n Rand<\/strong><\/p>\n\n\n\n The rand has experienced some relatively wild swings in recent weeks, having been sustained below R19 to the dollar for much of the month.<\/p>\n\n\n\n The local unit got a strong boost from the wider risk-on environment in the markets following US economic data pointing to the prolonged hiking cycle of interest rates coming to an end.<\/p>\n\n\n\n However, this was later tempered by hawkish comments from US Federal Reserve Chair Jerome Powell, saying that inflation was still too high and that future hikes could not be discounted.<\/p>\n\n\n\n On Wednesday (15 November), the rand made another swing as markets awaited retail data from the States. The rand is currently trading at R18.20 to the dollar, down from the R18.80 levels hit earlier in the week.<\/p>\n\n\n\n Given the rand’s journey over the past week or so, it is apparent that local market movements are being driven by non-local data, and much of the rand’s fortunes are tied to the US and related events<\/p>\n\n\n\n South African problems – like load shedding, infrastructure woes and the fight to close the budget gap – are taking a back seat and are likely already priced into the rand and have been for some time.<\/p>\n\n\n\n According to Investec chief economist Annabel Bishop, the rand is likely to remain volatile as market risk-taking rises and weakens as sentiment wanes.<\/p>\n\n\n\n Oil<\/strong><\/p>\n\n\n\n Oil prices have seen a sharp drop in November, following a rapid rise after war erupted between Hamas and Israel in October.<\/p>\n\n\n\n The war in the Middle East stirred fears that more countries would get pulled into the conflict, sending oil prices surging to over $95 a barrel, with markets eyeing a move above $100.<\/p>\n\n\n\n However, as the escalation did not happen, and the reality of China’s lower demand (and ample supplies in the US) fed through, the oil price fell back down and even dropped below the $80 a barrel mark last week.<\/p>\n\n\n\n Given the turn in pricing, this is reflected in the international cost of petroleum products, which is working in motorists’ favour in current forecasts.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/11\/Petrol-prices-mid-month-November.jpg\")
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