November 28, 2020

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Petrol price for December: More decreases await SA’s motorists

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Petrol prices are set to decrease yet again in December, according to mid-month data made available by the Central Energy Fund (CEF) on Monday 16 November. 

A decrease of around 35 cents per litre for petrol and five cents per litre for diesel will come as welcome news to South African motorists, who were treated to decreases in both October and November too.

THE FORECAST PETROL PRICE FOR December 2020

The CEF mid-month report suggests that due to the strengthening of the rand/dollar exchange rate, and changes to international petroleum product costs, the price of both petrol and diesel will be reduced. This data is subject to review and change by the Department of Energy and is used to inform the setting of petrol and diesel prices at the end of the month, but the mid-month data is generally a reliable indicator of the ultimate prices. 

According to the CEF, South African drivers can expect the following increases and decreases: 

  • Petrol 95: Decrease of 36 cents per litre;
  • Petrol 93: Decrease of 34 cents per litre;
  • Diesel 0.05%: Decrease of 5 cents per litre;
  • Diesel 0.005%: Decrease of 4 cents per litre;
  • Illuminating Paraffin: Increase of 10 cents per litre.

South African petrol prices are currently sitting at R14.26 a litre, while diesel is currently at R14.12 a litre. As a result of the expected increase and decrease variables the following prices can be expected in December:

95 Petrol R14.23
93 Petrol R14.05
0.05% Diesel (wholesale) R12.20
0.005% Diesel (wholesale) R12.23
Illuminating Paraffin R6.65

WHY ARE FUEL COSTS GETTING CHEAPER?

The impact of COVID-19 on European markets, as well as the calming of investment waters in the wake of the US Elections, has meant that the rand has enjoyed a rare strengthening in 2020. 

Following significant drops in the price of oil at the end of October – in which prices dipped to  as low as $38 a barrel – international prices have again climbed above $40 a barrel, and have now settled to around $43 a barrel. 

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