‘Marginal Relief’ on the Cards as Fuel Price Outlook Predicts December of 2 Halves for Motorists

• Motorists can expect the petrol price to decrease slightly while diesel increases in December
• The latest data predicted fluctuating costs following the first fuel price hike since July in November
• The rand weakened against the dollar after the US election as among the factors influencing prices

JOHANNESBURG — Fuel consumers are in for a December like no other at the pump as the Automobile Association (AA) forecasts fluctuating prices.

A run of several months of decreases that saw motorists enjoy more fuel in the tank screeched to a halt on Wednesday, 6 November 2024, following the first increase since July.

'Marginal relief' for motorists in December

Now, as the country gears up for the festive season, motorists have been warned to prepare for fluctuating prices in December.

The Central Energy Fund's (CEF) latest data suggests a slight decrease in petrol, with a possible reduction of five cents for Unleaded Petrol (ULP) 95 per litre, while ULP 93 could see a drop of about 16 cents.

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The same cannot be said for diesel and illuminating paraffin, which are predicted to rise significantly. The wholesale price of the products is expected to increase by 38 to 40 cents and 39 cents per litre, respectively.

While the Mineral Resources and Energy Department is set to announce the audited figures later this month, the AA advised consumers to plan for pricier goods and services during the festive season due to the expected diesel hike.

Fuel prices are affected by several factors, including Brent Crude oil prices, geopolitical uncertainties and production cuts.

Another critical factor is the rand's strength against the dollar, which weakened after the recent US election.

Prices are adjusted on the first Wednesday of every month.

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In similar news, Briefly News reported that Mineral Resources Minister Gwede Mantsashe unveiled the National Unity Government's (GNU) plans for the future of South Africa's energy consumption.

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Mantashe announced that the government was considering reducing fuel and electricity administered prices.

He made the bold pronouncements on 8 October at the Africa Oil Week (AOW) 2024 at the Cape Town International Convention Centre (CTICC).

Source: Briefly News