DIESEL prices are set to decrease sharply this month while some of the Mzansi motorists will have to pay higher petrol prices.
The price of petrol will increase by between 23 cents and 33 cents a litre next month.
Commenting on unaudited data from the Central Energy Fund (CEF), the Automobile Association (AA) said while international product prices are having a mixed impact on fuel prices, the stronger Rand is contributing positively on all fuel prices.
“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,” said association.
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 to diesel and paraffin prices is encouraging. Diesel is a major input cost in many sectors and the decrease to 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 to goods and services during 2022,” the AA said.
The strengthening of the Rand against the US Dollar has also lessened the expected increase to petrol prices which were expected mid-month.
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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.
