Motorists face petrol price hike in December
Recent strength of the rand relative to the dollar is likely to keep costs below July’s record high, AA says
The Automobile Association (AA) expects mixed fortunes for South Africans next month, with a big hike for petrol and paraffin, and a decrease for diesel.
Unaudited data from the Central Energy Fund indicates increases of between 97c/l and R1.09/l for petrol, and about 30c/l for illuminating paraffin, while the price of diesel could fall as much as 34c/l, in line with international trends.
Still, the increases are likely to be tempered by a relatively stronger rand-dollar exchange rate — especially since the second week of November, the AA said.
“With these expected increases the price of a litre of 95 ULP [unleaded petrol], for instance, will climb to just under R24/l, way below the high of R26.74/l seen in July but higher than September, October and November prices,” an AA spokesperson said. “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.”
The AA said the forecast price changes may vary before the final adjustment for December is made later in the month.
“However, increases to petrol prices are almost certain, while decreases to diesel are also almost a certainty,” it added.
“Given many people will be travelling by vehicle in December we advise motorists to carefully plan their budgets now to ensure they have the necessary funds to cover their expenses, which may also include toll fees on certain routes.”