Petrol prices are expected to increase by at least 97c in December.
According to the latest data released by the Central Energy Fund (CEF) this week, there is currently an under-recovery for petrol which, for the month so far, averages R1.14 for 95 unleaded and R1.03 for 93 unleaded.
On the upside, the latest data illustrates a smaller under-recovery in the region of 50c for the two grades of petrol, primarily as the rand is stronger. If the current trends persist, the increase is likely to fall somewhere between 50c and 70c.
The CEF data estimate an increase between 97c and R1.09 a litre. Illuminating paraffin is also expected to rise by an estimated 30c a litre.
Meanwhile, South Africa is experiencing an over-recovery of 22 cents for 500ppm (diesel). The drop of more than R1 per litre for diesel will be evident at the beginning of December.
But regardless of where fuel prices land in December, vacation trips will be more expensive than it was a year ago, when a litre of 93 unleaded cost R20.07 in inland regions.
Even if December’s increase is limited to 50c, petrol will still be R3 costlier than it was at the end of 2021, which means you will pay an extra R1.50 if you are putting 50 litres into a mid-size vehicle.
The petrol price hikes are due to an increasing price of oil prices.
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