Big fuel price cut from next week

The Central Energy Fund’s latest projections for December 2023 hint at a drop in fuel prices. If current market conditions hold, petrol 93 octane users might see a decrease of 98 cents, and those opting for 95 octane could enjoy a slide of 99 cents.

If these projections come to pass, 95-grade petrol prices could dip to R22.90, and diesel prices might gracefully cross the R20 per litre mark just in time for the holiday travel rush.

Despite recent fluctuations in the rand against the dollar, averaging around R18.50 in November, lower than October’s R19.10, the market seems to be favoring an over-recovery.

Globally, oil prices have taken a dip from the October turmoil triggered by the Hama-Israel war, easing jitters and falling below $80 a barrel.

As December approaches, international product prices show a downward trend. Although some market uncertainties persist, the late-November landscape indicates minimal impact on December pricing.

Bloomberg’s analysis points to a global benchmark Brent surpassing $82 a barrel, supported by expectations that the US Federal Reserve has concluded policy tightening, with recent dollar weakening adding to these price firmings.