“In the case of both grades of petrol, the movement of international product prices is adding between 60c and 71c a litre to the rising costs. But the stronger showing of the Rand against the US Dollar, especially in the second half of November, is softening those increases by around 37c/l. Currently, the price of 93ULP is expected to increase by around 23c/l and the price of 95ULP by around 33c/l,” notes the AA.
The good news, however, is in diesel prices which are expected to decrease by around R1.55/l. Illuminating paraffin is expected to decrease by 49c/l.
“The decrease in diesel and paraffin prices is encouraging. Diesel is a major input cost in many sectors and the decrease in this fuel cost is positive for all consumers. While positive, the suggested retail price of diesel in December will still be around R6.20/l more expensive than it was in January, which will have resulted in higher prices for goods and services during 2022,” says the AA.
The association notes that the prices of 93ULP and 95ULP petrol have similarly increased over the period, although by smaller margins of between R3.60/l and R3.90/l. Although less pronounced than the diesel increases over the year, this is nonetheless still significant and will have negative impact on motorists who are already facing severe financial pressures,” says the AA.
The AA notes that the strengthening of the Rand against the US Dollar has also lessened the expected increase to petrol prices which were expected mid-month. At that point, the expected increases to petrol were between 97c/l and R1.09/l while the decrease diesel was pegged at only 34c/l.