Drivers in South Africa are preparing for another fuel price hike set to take effect on Wednesday, 4 December, which presents a challenge for those planning long-distance trips to holiday destinations during the festive season.
The Department of Minerals and Energy (DMRE) revealed in a statement that the prices for both 93-octane unleaded petrol (93 ULP) and 95-octane unleaded petrol (95 ULP) will increase by 17 cents per litre.
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The cost of diesel with a 0.05% sulphur content will rise by 54.88 cents per litre, while diesel with a 0.005% sulphur content will see an increase of 55.88 cents per litre.
The DMRE attributes this rise in fuel prices to the international prices of petroleum products and the depreciation of the rand against the dollar, which has shifted from R17.53 to R17.93 during the assessment period.
These factors have significantly contributed to the escalating basic fuel prices for both petrol and diesel.
Read: Brace for higher fuel prices in November
Following Donald Trump’s reelection as US president on 6 November, the rand has experienced further depreciation over the past month.
Since the US election, the local currency has generally been trading above the R18 mark, a notable decline from R17.49 before the election.
This price increase for December signifies the second consecutive month of rising prices. The November hike was the first since May 2024.
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The rising fuel prices present a significant risk to South Africa’s inflation outlook. Recently, the country has made substantial strides in managing inflation, with the consumer price index (CPI) falling to 2.8% in October from 3.8% in September.
Decreasing fuel prices have been a key factor in this inflation slowdown, as stated by Casey Sprake, an investment analyst at Anchor Capital.
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She cautions in a company note that ongoing volatility in global fuel markets is likely to create uncertainty in South Africa’s inflation outlook in the near future.
“The rand’s susceptibility to global risk aversion remains a continuous challenge, especially in the context of geopolitical tensions or changes in international monetary policy,” she notes.
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