November’s fuel price cuts could be followed by more relief in December, if current oil price trends continue to the end of this month.
Those with diesel powered vehicles are likely to cheer the loudest, with yesterday’s daily snapshot from the Central Energy Fund pointing to potential price cuts of around R1.80 per litre, reported IOL.
Petrol is looking harder to predict at this stage, due to a wide variance between early-month and current data, but the eventual price reduction could fall somewhere between 60 cents and R1, should current trends persist.
South African diesel prices have risen by R5.40 in the three months, before dropping by 85 cents in November.
The wholesale price of 500ppm diesel is currently R23.44 on the coast and R24.16 inland.
But you will need to add at least R2 to arrive at the retail prices which vary between outlets.
95 unleaded petrol currently costs R23.18 on the coast and R23.90 inland.
A stronger currency and lower oil prices are currently contributing to an over-recovery in petrol and diesel prices.
On Tuesday, Brent Crude oil was trading at around the $85 mark, which is lower than last month’s average of $88.70 which determined the current prices.
The rand was trading at a favourable R18.36 to the dollar on Tuesday.
The official petrol and diesel price adjustments will be announced by the Department of Mineral Resources and Energy early next month before coming into effect on December 6.