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According to the latest information from the Central Energy Fund, petrol prices may be hiked in the first week of December, ahead of South Africa’s peak travel season. However, diesel could ease from record high levels.

The fuel prices are usually adjusted on the first Wednesday of a month and determined by the price of oil and the rand-dollar exchange rate.

The data shows that 95 unleaded petrol could be increased by around R1.10 a litre in December, with 93 petrol due for a 97c hike.

READ | Why diesel prices aren’t coming down that much

But diesel may be cut from record-high levels, and currently looks set for a decrease of between 27c and 35c.

Oil prices have been volatile in recent weeks. Demand has been bolstered by easing Covid-19 lockdown restrictions in China and a cut in production among oil producers. However, the oil price is trading at its lowest level in three weeks amid concerns about the US economic outlook.

A recent rally in the rand – which surged from R17.85/$ a week ago to R17.26 on Tuesday – will help fuel prices.

Following another hike this month, the Gauteng diesel price is now at R25.49 a litre – a new record high. A year ago, Gauteng’s diesel price was around R17.20 per litre.

In Gauteng, 95 petrol costs R22.87 a litre, compared to R19.54 a year ago – but down from a peak of R26.74 in July.

SOURCE:

December fuel prices: Petrol set for hike, but diesel may be cut | Business (news24.com)