Eish! Prepare for higher petrol and diesel prices this December

Motorists are facing higher costs for their holiday road trips this December, with forecasts indicating increases in both petrol and diesel prices. Despite 2023 being largely positive for fuel prices, it is set to end on a negative note.

The Central Energy Fund (CEF) has reported that petrol prices are expected to rise by around 30 cents, while diesel prices are anticipated to increase by between 70 cents (500ppm) and 85 cents (50ppm).

Although the current under-recovery on 95 Unleaded petrol stands at 23 cents, the latest daily data is more than 47 cents in the red, implying that the projected increase could rise to 30 cents or more by month-end.

A 30-cent increase would see the price of 95 Unleaded rising to around R20.59 at the coast and R21.42 in Gauteng, while 93 Unleaded could increase to R21.27.

On the upside, petrol will still be less expensive than it was at the beginning of 2025, when 95 ULP cost R20.80 at the coast.

The wholesale price of 50ppm diesel, which is projected to reach R19.28 in December, will end the year at a higher level, having started out at R18.68 in January, before rising to R19.69 in February.

In November, diesel prices fell by between 19 cents (50ppm) and 21 cents (500ppm) while both grades of petrol decreased by 51 cents.

December’s projected fuel price increases stem from higher international product prices, with a stronger rand providing moderate relief of around three cents to the equation.

Diesel prices face upward pressure towards the end of the year as cold weather in the northern hemisphere drives demand for heating oil, which is derived from the same crude oil components.

Brent Crude oil prices softened towards the $64 mark on Wednesday, as another inventory build outweighed concerns over possible fallout from Russia-related sanctions, Trading Economics reported.

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Cape Argus