File picture: Motshwari Mofokeng / Independent Media.
File picture: Motshwari Mofokeng / Independent Media.

Fuel prices likely to fall in December

By IOL Motoring Staff Time of article published Nov 15, 2016

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South African fuel prices have been on a seesaw in recent months, but the good news is that cost of filling up is likely to decrease from the beginning of December, just in time for the holidays.

The latest data from the Central Energy Fund shows that SA could be in for a petrol price reduction of around 50 cents a litre, depending of course on which way the currency and fuel prices swing between now and the end of the month.

The CEF price data up to and including November 14 shows an average over-recovery of 45 cents for the month so far in the case of petrol and 39 cents for diesel, but recent days have seen daily over-recoveries somewhat higher than that, with Monday's figures of 53 c/l for petrol and 51 c/l for diesel also reflecting the recent depreciation of the rand following Trump's election and declines in oil prices.

However, the Automobile Association warned that the rand remains vulnerable to scenarios that might unfold in the coming months, including a possible ratings downgrade and shifts in US policy from early 2017, and that further currency depreciation would not bode well for future fuel prices.

"While the expected reduction at the pumps ahead of the 2016 Christmas season is welcome, South Africans would be prudent not to expect sustained drops in the fuel price over the next few months," the association said.

95 Unleaded currently costs R13.05 in Gauteng and R12.57 at the coast, while low-sulphur diesel retails at R11.38 and R10.99 respectively.


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