South Africa’s December 2024 Fuel Price Changes – Know How They’ll Impact You

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By: Anushka

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As December 2024 approaches, South African motorists are preparing for changes in fuel prices. Based on the latest projections, petrol users might see slight relief, while diesel and illuminating paraffin users could face increases.

These adjustments reflect a mix of international oil price trends and the fluctuating rand/dollar exchange rate, factors that continue to influence South Africa’s volatile fuel market.

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Changes

The Central Energy Fund (CEF) has provided projections for December 2024 based on mid-November data. Here’s a breakdown of the expected price changes:

Fuel TypeExpected Price Change
Petrol 93 OctaneDecrease of 16 cents per litre
Petrol 95 OctaneDecrease of 4 cents per litre
Diesel 0.05% SulfurIncrease of 39 cents per litre
Diesel 0.005% SulfurIncrease of 38 cents per litre
Illuminating ParaffinIncrease of 39 cents per litre

Petrol prices are expected to decrease slightly, with 93 octane dropping by 16 cents per litre and 95 octane by 4 cents per litre. However, diesel users might face increases of up to 39 cents per litre, and illuminating paraffin prices are also set to rise.

Factors Influencing

Two primary factors determine South Africa’s fuel prices:

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1. International Oil Prices

Crude oil prices significantly impact the cost of petroleum products. As of mid-November, Brent crude oil is priced at $71.44 per barrel, reflecting global economic conditions, geopolitical events, and production decisions by oil-producing countries.

2. Rand/Dollar Exchange Rate

The exchange rate between the South African rand and the US dollar directly affects import costs for crude oil. As of now, the rand stands at R18.09 per US dollar. A weaker rand leads to higher import costs, often resulting in increased local fuel prices.

Current Prices

To know the impact of the upcoming changes, here’s a comparison of November 2024 prices with the expected prices for December:

Inland Region

Fuel TypeNovember 2024 PriceExpected December Change
Petrol 93 OctaneR20.98Decrease of 16 cents
Petrol 95 OctaneR21.30Decrease of 4 cents
Diesel 0.05% SulfurR18.66Increase of 39 cents
Diesel 0.005% SulfurR18.77Increase of 38 cents
Illuminating ParaffinR12.87Increase of 39 cents

Coastal Region

Fuel TypeNovember 2024 PriceExpected December Change
Petrol 93 OctaneR20.19Decrease of 16 cents
Petrol 95 OctaneR20.51Decrease of 4 cents
Diesel 0.05% SulfurR17.87Increase of 39 cents
Diesel 0.005% SulfurR18.01Increase of 38 cents
Illuminating ParaffinR11.87Increase of 39 cents

The slight decrease in petrol prices offers some respite for motorists. However, rising diesel and illuminating paraffin costs will have a broader impact, particularly in sectors like logistics and agriculture.

Consumers

The December 2024 fuel price adjustments highlight the mixed outlook for South African motorists.

  • Petrol Users: Slight relief at the pump may ease the financial burden for drivers.
  • Diesel and Paraffin Users: Higher prices could increase operational costs for businesses reliant on diesel and paraffin, including transportation and farming industries.

The adjustments reflect the ongoing challenges of fluctuating crude oil prices and exchange rates. For now, consumers should stay informed about these factors, as they significantly influence household and business expenses.

FAQs

Will petrol prices decrease in December 2024?

Yes, 93 octane may drop by 16 cents, and 95 octane by 4 cents.

Why are diesel prices increasing?

Diesel prices are rising due to higher crude oil costs and a weaker rand.

What is the current price of Brent crude oil?

Brent crude oil is priced at $71.44 per barrel as of mid-November.

How does the rand/dollar exchange rate affect fuel prices?

A weaker rand increases the cost of importing crude oil, raising local fuel prices.

What is the expected increase for diesel in December 2024?

Diesel prices may rise by 38-39 cents per litre.

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