Update: Both grades of petrol will go up by 59c/l from Wednesday 7 December 2022. Good News for Diesel users is that the price will go down by R1.57c/l.
Diesel prices are set to decrease sharply in December while petrol prices will increase by between 23 cents and 33 cents a litre.
Commenting on unaudited data from the Central Energy Fund (CEF), the Automobile Association (AA) says while international product prices are having a mixed impact on fuel prices, the stronger Rand is contributing positively on all fuel prices. Fuel prices for December will be adjusted next Wednesday, 7 December 2022.
“In the case of both grades of petrol, the movement of international product prices is adding between 60c and 71c a litre to the rising costs. But the stronger showing of the Rand against the US Dollar, especially in the second half of November, is softening those increases by around 37c/l. Currently the price of 93ULP is expected to increase by around 23c/l and the price of 95ULP by around 33c/l,” notes the AA.
The good news, however, is in diesel prices which are expected to decrease by around R1.55/l. Illuminating paraffin is expected to decrease by 49c/l.
“The decrease to diesel and paraffin prices is encouraging. Diesel is a major input cost in many sectors and the decrease to this fuel cost is positive for all consumers. While positive, the suggested retail price of diesel in December will still be around R6.20/l more expensive than it was in January, which will have resulted in higher prices to goods and services during 2022,” says the AA.
The Association notes that the prices of 93ULP and 95ULP petrol have similarly increased over the period, although by smaller margins of between R3.60/l and R3.90/l. Although less pronounced than the diesel increases over the year, this is nonetheless still significant and will have negatively impact on motorists who are already facing severe financial pressures,” says the AA.
The AA notes that the strengthening of the Rand against the US Dollar has also lessened the expected increase to petrol prices which were expected mid-month. At that point, the expected increases to petrol were between 97c/l and R1.09/l while the decrease diesel was pegged at only 34c/l.
“The Rand’s positive movement is certainly aiding consumers without which the outlook may have been gloomier. Going forward, though, we will continue to call for a re-evaluation of the fuel pricing structure to provide more longer lasting solutions to mitigate against rising fuel costs. A review of the fuel price must examine all the components that comprise a litre of fuel, establish their continued relevance as part of the fuel price, and determine if the calculations used are still correct. As we have said before, we believe such a review is long overdue and the longer government delays in getting this started, the longer it will take to find sustainable solutions,” the AA concludes.