Santa might have an early Christmas present for South African motorists in the form of cheaper fuel prices in December.
This is according to the Automobile Association (AA), which has analysed the unaudited mid-month data from the Central Energy Fund.
The AA said the decreases will add further relief to struggling consumers, especially ahead of the end of the year, where they are expected to use major holiday routes during the festive season.
Based on data from the CEF, consumers can expect a decrease of about R1.06/l for ULP 95, R1.05/l for ULP 93, and a massive decrease of about R2.10/l for diesel. Illuminating paraffin is expected to drop by about R1.75/l.
“The data is showing international product prices have eased since the beginning of the month and are contributing to the bulk of the expected decreases. The stronger value of the Rand against the US dollar is also playing its part and is combining with the more stable oil prices to ensure South Africans can look forward to lower fuel prices in December,” said the AA.
Based on these numbers, ULP 95 inland could drop to about R22.17/l and R22.05 at the coast, marking the lowest pricing for the fuel since February.
The expected drop in the diesel price will bring the fuel cost down to around R22.15/l, higher than its August pricing of R20.21/l but cheaper than its September pricing of R23.05/l.
“South Africans planning long journeys for their end-of-year holidays will, no doubt, be extremely happy with this news, as will consumers who suffer when diesel prices increase,” said the AA.
To further benefit from lower fuel prices, the association urged motorists to ensure their vehicles are in good mechanical condition, and their tyres are in a good state and inflated according to manufacturer’s specifications.
Adjusted fuel prices come into effect on December 6.