AA’s outlook of December fuel prices a mixed bag
MBOMBELA - The current unaudited data from the Central Energy Funds indicated a mixed bag of increases and decreases to fuel prices for
December, according to the Automobile Association (AA).
The association says the data indicates significant increases to petrol prices of between 97c per litre and R1.09 per litre, but a decrease of up to 34c per litre for diesel next month. Illuminating paraffin is also expected to increase by around 30c per litre.
In a statement dated November 15, according to the data, the average upward movement in international product prices is the main driver behind the increase to petrol prices, while 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.
“With these expected increases to petrol, the price of a litre of 95ULP, for instance, will climb to just under R24 per litre, which will be way below the high of R26.74 per litre in July, but which will still be higher than the September,
October, and November prices. The decrease to diesel is, of course, welcome, and should, at least, not immediately negatively impact other prices reliant on diesel as an input cost. Of course, the increase in illuminating paraffin remains a concern, as it will affect the poor most,” said the AA.
It must be noted that these are midmonth figures and are likely to change before the final adjustment for December is made later in the month.
“However, increases to petrol prices are almost certain to happen, while decreases to diesel are also almost a certainty.”