Data from the Central Energy Fund (CEF) suggests a positive outlook for fuel prices in the new year, with recent trends showing a balanced shift between under-recovery and over-recovery as the rand/dollar exchange rate and global oil markets continue to fluctuate, reports BusinessTech.
A stable rand below R18.00/$ and oil prices under $75 a barrel have kept fuel prices steady, with over-recovery for petrol 95, diesel and paraffin. Only petrol 93 is set for an increase.
Below are the latest projections from the Central Energy Fund (CEF), effective Thursday, 12 December.
These are the current projections:
- Petrol 93: increase of 7 cents per litre
- Petrol 95: decrease of 1 cent per litre
- Diesel 0.05% (wholesale): decrease of 5 cents per litre
- Diesel 0.005% (wholesale): decrease of 3 cents per litre
- Illuminating paraffin: decrease of 15 cents per litre
Domestic fuel prices in South Africa are mainly influenced by the rand/dollar exchange rate and oil prices, with adjustments made on the first Wednesday of each month.
BusinessTech reports that in December, lower oil prices support an over-recovery, while a weaker rand contributes to an under-recovery.
The rand strengthened last week after cooler-than-expected inflation data and a weaker dollar.
Still, local economic data from the SARB dampened the gain, pushing it back above R17.80 to the dollar.
The SARB flagged reduced foreign investment and ongoing strain on households.
With most year-end data released, markets are expected to quieten in the coming weeks.
Additionally, Brent crude has, at the time of publishing, risen but settled around $73-$74 a barrel.
Final petrol and diesel price changes will be confirmed early next week, taking effect at midnight on Tuesday, 7 January 2025.
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Picture: Sharon Seretlo / Gallo
