Fuel price cuts anticipated this December​

Based on the latest projections from the Central Energy Fund (CEF), South African motorists may see a significant decrease in fuel prices this December.

Various reports suggest that petrol prices are expected to drop by around R1.07 per litre, while diesel prices may decrease by approximately R2.10 per litre. These may vary from the actual reductions which will be officially adjusted on 6 December 2023.

Fuel prices in South Africa are dependent on global oil prices and the rand-dollar exchange rate. Brent crude oil, the international benchmark, began trading above $86 a barrel in November but has since dipped to around $82.

Domestically, the rand has shown considerable strength against the dollar, moving from above R18.70/$ to around R18.20. This improvement is partly due to weaker U.S. inflation data, leading to speculation that the Federal Reserve may not increase interest rates further.

If the anticipated December fuel price cuts happen, it would mark the second consecutive month of reductions. In November, petrol prices dropped by R1.78 per litre, reaching their lowest point since August, while diesel prices decreased by over 80 cents.