Fuel prices set for big drop in November

Fuel prices set for big drop in November

South African motorists will breathe a sigh of relief following indications that fuel prices are set for a big drop in November. This is based on unaudited mid-month data from the Central Energy Fund (CEF). 

The data indicates ULP95 is set to decrease by about R1.97/l and ULP93 by R1.92/l. Diesel is set for a decrease of about 78c/l. The unaudited data also points to a decrease in the cost of illuminating paraffin of about 74c/l.

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AA spokesperson Layton Beard says the data shows that more stable international oil prices are the main driver behind the potential decreases. 

“The outlook for November will offer some much-needed relief to consumers,” he said. 

“Especially with the decrease of diesel, which is a big input cost in major sectors such as agriculture, mining, and manufacturing, and an increase here often contributes to increased prices of basic commodities.

“There are still two weeks before the official adjustment for November. Which could still be negatively affected by the upward trajectory of oil prices due to the ongoing conflict in Israel,” added Beard.

“These significant decreases will come at a very critical time for South Africans who have had to dig deeper into their pockets to fill up their vehicles and food trolleys with the previous cycles of fuel increases.”

The official adjusted fuel prices come into effect on the first Wednesday of November. It will be announced by the Department of Mineral Resources and Energy on 1 November.

EXPECTED FUEL PRICES FOR NOVEMBER 

Petrol 93: down by 189 cents per litre

Petrol 95: down by 193 cents per litre

Diesel 0.05%: down by of 75 cents per litre

Diesel 0.005%: down by 69 cents per litre

Illuminating paraffin: down of 72 cents per litre

Fuel prices expected to drop in June

Fuel prices expected to drop in June

Motorists will be delighted as fuel prices are expected to drop in the month of June.

Mid-month data from the Central Energy Fund shows that there is an over-recovery in petrol prices. This is likely to lead towards a decrease of between R1.11 and R1.13 per litre next month. 

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Diesel drivers may also see another cut in fuel prices. Recent data has also pointed to an over-recovery between R1.27 and R1.36 per litre.

Expected changes:

Petrol 93: decrease 113 cents a litre;

Petrol 95: decrease 111 cents a litre;

Diesel 0.05%: decrease 136 cents a litre;

Diesel 0.005%: decrease of 127 cents a litre

FUEL PRICES EXPECTED TO DROP

Illuminating paraffin: decrease of 79 cents a litre.

Fuel prices expected to drop in June
Fuel prices expected to drop in June

The domestic fuel costs are usually governed by the rand/dollar exchange rate and international oil prices. 

The Automobile Association (AA) says lower international product prices are the reason behind the predicted decreases.

“The weaker rand/US dollar exchange rate, though, is taking away from the forecast decreases. Which would also have been more significant had the rand been stronger,” said the AA. 

“As it stands, both grades of petrol are heading for decreases of around R1/l, while the decreases to diesel are currently standing at around R1.30/l.

“Importantly, the data is showing that illuminating paraffin, which is such an important fuel at this time of the year, is headed for a decrease of around 80c,” they said.

The fuel price is adjusted on the first Wednesday of every month based on these two factors.

What to look for in terms of fuel prices in December

What to look for in terms of fuel prices in December

Current unaudited data from the Central Energy Fund (CEF) is indicating a mixed bag of increases and decreases to fuel prices for December. This is according to the Automobile Association (AA).

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 on the rise
Fuel prices on the rise

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.