Cape Town – South African motorists could see a significant drop in petrol prices in December, with early data from the Central Energy Fund (CEF) pointing to an over-recovery of more than R2 per litre for both grades of petrol.
CEF data for the first week of November shows an over-recovery of R2.02 per litre for 93 petrol and R2.32 for 95 petrol, signalling the possibility of a sizeable reduction at the pumps next month.
The latest outlook comes after motorists received almost no petrol-price relief in November, when both 93 and 95 petrol fell by just 1 cent per litre. Diesel prices, however, dropped by more than R1 per litre.
The December outlook is being helped by a sharp decline in international oil prices and a firmer rand.
Brent crude fell from close to $118 a barrel to around $95, following the US midterm elections, while the rand has strengthened to around R16.50 against the dollar.
The forecasts come with an important caveat. National Treasury’s temporary fuel levy relief will be reduced in December. The petrol levy reduction will fall from R1.50/l in November to R1/l, effectively adding 50 cents back to the price, while the diesel relief will fall from R3/l to R1.50/l.
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Compiled by Betha Madhomu
