The Association said the data is indicating significant increases to petrol prices of between 97c/litre and R1.09/l. But there might be a decrease of up to 34c/l for diesel next month. Illuminating paraffin is expected to increase by around 30c/l.
According to the data, the average upward movement in international product prices is the main driver behind the increase to petrol prices. The slight downward trend in international diesel product prices is having the reverse impact on this fuel.
The rand is performing stronger against the US dollar in daily trading. Especially since the second week of November, which is having a positive impact on fuel prices.
FUEL PRICES PREDICTIONS
“With these expected increases, the price of a litre of 95ULP will climb to just under R24/l. Which will be way below the high of R26.74/l seen in July. But higher than September, October, and November prices.
The decrease to diesel is welcome and should, at least, not immediately negatively impact other prices reliant on diesel as an input cost. The increase for illuminating paraffin remains a concern as it will affect the poor most,” said the AA.
The association said it must be noted these are mid-month figures and are likely to change before the final adjustment for December later in the month.
“However, increases to petrol prices are almost certain to happen. The decreases to diesel are also almost a certainty. Given that many people will be travelling by vehicle in December we advise motorists to carefully plan their budgets to ensure they have the necessary funds to cover their expenses, which may include toll fees on certain routes.”
The AA said planning for year-end trips must include ensuring vehicles are in good condition.