South Africa’s petrol and diesel prices, although still expensive in historical terms, are trending downwards at present.
Following respective petrol price decreases of R1.78 in November and 65 cents in December, with diesel prices falling by 82 cents and R2.35 in those same months, fuel costs are looking set to subside further in January.
While the good news is that next month’s fuel price equation is showing a positive balance at this early stage of the month, if current trends persist those decreases could be on the low side.
The interplay of data for the month so far makes it difficult to make an accurate prediction. 95 Unleaded petrol, for instance, is currently running at an average over recovery of 77 cents, but with the latest daily data being just 50 cents in the green, that number could decrease. An over recovery will lead to a fuel price decrease if it persists until month end.
The diesel decrease is also looking likely to dip below R1 if current trends persist, even though the current average over recovery stands at around R1.40.
International oil prices have trended downwards during December, with Brent Crude trading at around the $74 mark on December 13, having dipped below the $80 mark this month for the first time since July.
But a weaker rand is counteracting the cheaper oil, having traded above the R19 to the US dollar mark for most of December, up from its average of R18.57 in November.
Following December’s decreases, 95 Unleaded petrol currently sells for R22.53 at the coast and R23.25 in Gauteng, where 93 ULP retails at R22.79.
Stay tuned to IOL Motoring for more updates later in the month.