Petrol, diesel prices on track for cuts in December
Based on the current oil, international fuel and rand prices, the latest data from the Central Energy Fund (CEF) shows that petrol prices could be cut by around R1.07 a litre in December, while diesel prices could be lowered by around R2.10 a litre.
However, there is still more than two weeks to go before the final prices are set. Fuel prices will only be adjusted on 6 December.
South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.
The price of Brent crude oil traded above $86 a barrel at the start of November but has since fallen to around $82.
Oil rallied in recent weeks amid concerns that the Israel-Hamas conflict would disrupt supplies. However, the price surge has petered out as traders worry about oil demand, especially as the Chinese economy remains weak.
This week, the International Energy Agency said global oil markets won’t be as tight as expected this quarter, with production growth in the US and Brazil beating forecasts, Bloomberg reports.
After spiking to above R18.70/$ recently, the rand has strengthened quickly to R18.20 this week as the dollar came under big pressure. Weaker-than-expected inflation data in the US has fuelled expectations that the Fed won't hike interest rates any further, which will make the dollar more unattractive for investors looking for yield.
If the current fuel price cuts pan out, it will be the second consecutive month of decreases. In November, the price of petrol was lowered by R1.78 a litre to the lowest level since August, while diesel was cut by more than 80c.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
