If the AA’s predicted petrol price for December 2019 is true, motorists, who rely on petrol will have to tighten their belts over the holidays. However, there is good news for diesel users as prices are set to drop in December.
South Africa’s petrol and diesel are determined monthly and for most of 2019, there has been increases in fuel prices. Read more why petrol and diesel prices go up and down in South Africa.
It was commenting on the unaudited mid-month fuel price data released by the Central Energy Fund.
The Association says the underlying fundamentals have been treading water in the first half of November 2019.
Petrol price December 2019
The AA said this has given rise to:
- a predicted 11 cents a litre increase for 95 octane petrol,
- a 7-cent rise for 93 octane petrol,
- an 18-cent decrease in Diesel price, and
- a 21-cent decrease in illuminating paraffin price.
“The average Rand/US dollar exchange rate has been essentially flat. Thus, contributing a small decrease of about 3.5 cents to fuel prices as it maintains a level around R14.90 to the dollar,” the AA noted.
“The picture for oil is similar. The international prices of both petrol and diesel having run neck-and-neck for several days last week.”
The AA says the economy has taken a breather with Moody’s choosing to give South Africa the benefit of the doubt with a change of outlook, rather than a downgrade.
“Petrol price increases at this time of year will come as bad news for many people, who will be travelling on holiday in December.
“However, the predicted drop in the diesel price means input costs in for instance the manufacturing and agricultural sectors. These remains relatively untouched in relation to fuel costs, which is good news,” the AA concludes.