December 2024 Fuel Price Shifts in South Africa: What You Need to Know

Drivers in South Africa are getting ready for increases in fuel costs as December 2024 draws near. According to the most recent estimates, users of gasoline may have a small reprieve, while users of diesel and illuminating paraffin may experience increases.

These changes take into account a variety of factors that continue to impact South Africa’s unstable fuel market, including global trends in oil prices and the volatile rand/dollar exchange rate.

Changes

Based on data from mid-November, the Central Energy Fund (CEF) has released forecasts for December 2024. The anticipated price changes are broken out as follows:

With 95 octane and 93 octane dropping by 4 and 16 cents per liter, respectively, it is predicted that petrol costs will progressively drop. Diesel consumers may experience increases of up to 39 cents a liter, and the cost of illuminating paraffin is also anticipated to increase.

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Factors Influencing

Two primary factors determine South Africa’s fuel prices:

1. International Oil Prices

The price of petroleum products is greatly influenced by the price of crude oil. The price of Brent crude oil, which reflects the state of the world economy, current geopolitical events, and the production choices made by oil-producing nations, is $71.44 a barrel as of mid-November.

2. Rand/Dollar Exchange Rate

Crude oil import prices are directly impacted by the exchange rate between the US dollar and the South African rand. The rand is currently worth R18.09 to the US dollar. Higher import expenses are caused by a declining rand, which frequently raises 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

Coastal Region

For drivers, the little drop in gas prices provides some relief. But the effects of rising diesel and illuminating paraffin prices will be more widespread, especially in industries like agriculture and logistics.

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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 changes take into account the continuous difficulties caused by volatile exchange rates and crude oil prices. For the time being, customers should be aware of these aspects because they have a big impact on household and company spending.

FAQs

Will petrol prices decrease in December 2024?

Indeed, there is a 16-cent decline in 93 octane and a 4-cent drop in 95 octane.

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?

As of mid-November, the price of a barrel of Brent crude oil is $71.44.

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

The cost of importing crude oil rises when the rand declines, which drives up the price of fuel locally.

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