How December 2024 Fuel Price Changes in South Africa Affect You

South Africa fuel price changes in December 2024: How will it affect you?
The following shows what South African motorists expect to encounter or discover of any nature in December, 2024 in as far as fuel prices are concerned. Early estimates bring mixed news: Petrol prices will be slightly lower and diesel and illuminating paraffin prices will slightly higher.
In this article, the author examines why changes are taking place and to what extent they will impact consumers.

Expected fuel price changes for December 2024

In mid-November 2024, the Central Energy Fund (CEF) reported on expected fuel price changes for December 2024.
Key observations:
Petrol: Prices for 93 and 95 octane grades are expected to fall by 16 and 4 cents per liter respectively.
Diesel: Prices for 0.05% and 0.005% Sulphur variants may increase by around 38-39 cents per liter.
Illuminating Paraffin: The price of this essential fuel is also projected to increase by 39 cents per liter.

Fuel Type	Expected Price Change
Petrol 93 Octane	Decrease of 16 cents
Petrol 95 Octane	Decrease of 4 cents
Diesel 0.05% Sulfur	Increase of 39 cents
Diesel 0.005% Sulfur	Increase of 38 cents
Illuminating Paraffin	Increase of 39 cents

Key Factors Affecting Fuel Prices

Petrol prices are strongly related to prices of crude oils. By mid November, 2024 one barrel of Brent crude oil was worth $71.44. Some of these include international relations characteristic of the political climate, and the production policies carried out by the world’s main oil producers.

Rand/dollar exchange rate

South Africa imports most of its crude oil, so the rand/dollar exchange rate is very important. As at mid November, 2024 the value of the rand was R18.09 to $1. It may be noted, a change in exchange rate means that the costs of imports are impacted. Local fuel price tends to be affected by a weaker rand since the local price of fuel is often determined from the prices of international oil benchmarks.

Current Prices vs. Projected December 2024 Prices

To better understand the implications, here’s a comparison of November 2024 prices with December’s projections for inland and coastal regions:

Region	Fuel Type	November 2024 Price (R/L)	December 2024 Projected Change
Inland	Petrol 93 Octane	R20.98	-16 cents
Inland	Petrol 95 Octane	R21.30	-4 cents
Inland	Diesel 0.05% Sulfur	R18.66	+39 cents
Inland	Diesel 0.005% Sulfur	R18.77	+38 cents
Inland	Illuminating Paraffin	R12.87	+39 cents
Coastal	Petrol 93 Octane	R20.19	-16 cents
Coastal	Petrol 95 Octane	R20.51	-4 cents
Coastal	Diesel 0.05% Sulfur	R17.87	+39 cents
Coastal	Diesel 0.005% Sulfur	R18.01	+38 cents
Coastal	Illuminating Paraffin	R11.87	+39 cents

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New November 2024 prices against future December 2024 prices

The exchange rate of the rand dollar for mid November,2024 was R18.09 to $1. It may be noted that in case there is a change of the exchange rate then it is true that the costs of imports change as well.
Local fuel price tends to be affected by a weaker rand since the local price of fuel is often determined from the prices of international oil benchmarks.
Local fuel price tends to be affected by a weaker rand since the local price of fuel is often determined from the prices of international oil benchmarks.

Impact on South African motorists

Relief for petrol users
Motorists who use petrol, especially in the 93 octane grade, may get some relief due to a drop of 16 cents per liter. This drop may slightly reduce travel and transportation costs.
Challenge for diesel and paraffin consumers
An increase in prices of diesel and paraffin affects the macro economical factors of the country. Higher costs of diesel that is incurred in transport and logistics may well translate to higher costs of most commodities. Moreover, illuminating paraffin that the BPO subsidized for use in cooking and lighting by low income earners will also be expensive hence exert more economic pressure.

Market watch: What’s next?

These changes underline the importance of monitoring international oil prices and the rand/dollar exchange rate. While petrol users can celebrate lower prices, diesel and paraffin users may face hardship. The impact of these changes can be felt from agriculture to the retail sector.

Conclusion

The change in fuel prices in December 2024 will bring both relief and challenges for South African consumers. The drop in petrol prices will benefit some, but the rising cost of diesel and paraffin could put macroeconomic pressures on consumers. It is important for consumers to keep an eye on these changes and adjust their budgets accordingly.