Petrol price hopes crushed as Donald Trump victory keeps rand on back foot
Although data earlier in the month had pointed towards a small petrol price decrease in December, this is now looking unlikely due to a weaker rand.
The latest daily snapshot from the Central Energy Fund shows an average over-recovery of one cent for 95 Unleaded and 12 cents for 93 Unleaded.
However, with the latest daily numbers indicating that an under-recovery is developing for both grades, South Africans could even be facing a small increase if that trend persists until month-end.
Diesel is looking certain for a price hike in December, with the two grades currently averaging around 43 cents in the red, but the daily data implies that number could still grow.
The good news for petrol, however, is that its price movements are almost certain to be minimal, and 95 Unleaded is still R1.26 cheaper than it was in January 2024.
Following the 25 cent petrol price increase announced at the beginning of November, 95 Unleaded currently costs R20.51 at the coast and R21.31 in the inland regions, where 93 Unleaded sells for R20.98.
Diesel, with 50ppm listed at a wholesale price of R18.01 at the coast, is R2.01 less expensive than it was at the beginning of the year.
The rand is currently having a negative influence on December’s fuel price equation, to the tune of around 17 cents per litre.
The local currency, which averaged $17.53 to the US dollar during last month’s fuel price review, broke through the $18 barrier for the first time in three months on November 12, as Donald Trump’s US election victory spooked emerging markets, with uncertainty lingering over his future trade policies.
The rand volatility has persisted since then, trading at $18.16 on November 21. Brent Crude oil has, on the other hand, remained below its October average of $75, and was listed at $72.80 (R1,322) on Thursday morning.
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