Motoring

Anticipated Fuel Price Drop Predicted by CEF for Festive Season

Published

5 months ago

November 30, 2023

Anticipate a pleasant surprise, South African motorists, as a forthcoming petrol and diesel price cut looms, poised to be effective next week, courtesy of stable global oil prices.

Watch out for the announcement from the Department of Mineral Resources and Energy revealing the fuel price modifications set to be enforced on Wednesday, 6 December.

The Central Energy Fund‘s (CEF) most recent daily figures on under and over-recovery indicate an expected R1 decline in petrol prices. Simultaneously, diesel’s reduction will range between R2.22 and R2.28 per litre.

Also read: Fuel Prices Poised for November Decrease

Business Tech reports that the rand’s ongoing contribution leads to an over-recovery of between 32 and 28 cents per litre in local fuel prices. However, the influence of international product prices is notable, contributing 66 cents per litre for petrol and R1.90 per litre for diesel.

Consequently, petrol prices will hit R22.90 for the 95-grade, while diesel prices may dip slightly over R20 per litre just in time for the festive season.

The rand’s favourable contribution to the over-recovery is linked to its extensive range of trading against the dollar throughout November, maintaining an average of around R18.50 compared to the October average of R19.10.

Moreover, observe a substantial decline in oil prices, plummeting to less than $80 a barrel since November.

Source: CEF forecasts petrol and diesel price cut ahead of the festive season

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