South Africans looking forward to the festive season may have to brace for bad news with a possible spike in petrol and diesel prices in December.
December and the festive season are times for giving, but motorists may have to dig deep into their pockets for fuel.
Grim forecast
While many were hoping the drop in fuel prices would continue into the holiday period, data from the Central Energy Fund (CEF) paints a grim and painful picture.
Data from the CEF shows increasing under-recoveries for all fuel grades, with numbers in the red.
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Fuel prices
The forecast on Monday, 17 November, points to petrol price hikes of about 19 cents per litre for 93‑octane and 23 cents per litre for 95‑octane.
Motorists using diesel-powered vehicles face an even steeper hike.
The price of diesel (0.05% sulphur) is expected to increase by 69 cents per litre, while diesel with (0.005% sulphur) is set to jump to 84 cents per litre.
Meanwhile, illuminating paraffin is expected to spike by 75 cents per litre.
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What’s pushing fuel prices up?
The potential hike is being driven by several factors, including higher global Brent Crude Oil prices due to United States (US) sanctions on Russian oil.
Last month, the oil price decreased from $67.16 to $64.14 during the period under review due to oversupply driven by increased global production and uncertainty caused by continued trade tensions.
While the rand appreciated on average against the US dollar (USD) from R17.49 to R17.29 per USD in October, it is now showing signs of decline, which could lead to a possible hike in fuel prices.
Current prices
Currently, a litre of 93 unleaded petrol costs R20.97 per litre, while 95 unleaded costs R21.12 per litre.
The wholesale price of 0.05% (500 PPM) diesel costs R19.13 per litre, and 0.005% (50 PPM) will cost R19.20 per litre.
The Department of Mineral Resources and Energy (DMRE) will make a final determination of the fuel prices by the end of November.
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