More fuel price relief on the horizon

Fuel prices across the board are projected to decrease significantly in December, according to unaudited mid-month data from the Central Energy Fund (CEF). The Automobile Association (AA) says the decreases will add further relief to struggling consumers, especially ahead of the end of the year, and the expected increase in traffic on major holiday routes.

Based on the current data from the CEF, consumers can expect a decrease of around R1.06/litre for ULP 95, R1.05/l for ULP 93, and a massive decrease of around R2.10/l for diesel. Illuminating paraffin is also expected to drop by around and R1.75/l.

“The current data is showing that international product prices have eased since the beginning of the month and are contributing to the bulk of the expected decreases. The stronger value of the Rand against the US Dollar is also playing its part and is combining with the more stable oil prices to ensure South Africans can look forward to lower fuel prices in December,” says the AA.

Based on these numbers, ULP 95 inland could drop to around R22.17/l, and R22.05 at the coast marking the lowest pricing for this fuel since February. The expected drop in the diesel price will bring this fuel cost down to around R22.15/l, higher than its August pricing of R20.21/l but cheaper than its September pricing of R23.05/l.

“South Africans planning long journeys for their end-of-year holidays will, no doubt, be extremely happy with this news, as will consumers who suffer when particularly diesel prices increase,” says the AA.

To further benefit from the lower fuel prices, the Association urges motorists to ensure their vehicles are in good mechanical condition, and that their tyres are in a good state and inflated according to manufacturer’s specifications.

“Planning for a long journey during the December/January break should begin now and should include a complete once-over of your vehicle to ensure it is ready for a long trip. In addition to keeping your vehicle in good condition, we also urge all road users to ensure their state of mind is equally ready to share the road with other road users and to play their part in keeping our roads safe this festive season,” concludes the AA.

Adjusted fuel prices for December come into effect on 6 December.