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South Africans will face fuel price increases in December, the Department of Mineral and Petroleum Resources has confirmed. The adjustments, effective from December 4, will see petrol and diesel prices rise significantly, affecting consumers ahead of the peak summer travel season.

The price of petrol will increase by 17 cents per litre for both 93 and 95 Unleaded variants. This brings the inland price of 95 Unleaded petrol to R21.47 per litre, while the coastal price will be R20.68. Similarly, 93 Unleaded petrol in inland regions will cost R21.15. Diesel prices will see larger hikes, with a rise of 55 cents per litre for 500ppm and 56 cents for 50ppm, making the wholesale diesel price R19.33 inland and R18.57 at the coast. Retail diesel prices will vary. Additionally, the wholesale price of illuminating paraffin will increase by 49 cents per litre, while the retail price of LP gas is set to rise by R1.72 per kilogram.

Although the global Brent Crude oil price fell slightly, from $73.28 to $72.70, the rand’s depreciation against the dollar offset these gains. The rand weakened by 40 cents during the review period, moving from R17.53 to R17.93 to the dollar. The drop in the currency was attributed to uncertainty following Donald Trump’s US election victory, with fears over his foreign economic policies and the potential for increased US interest rates driving investors toward the dollar.

Diesel prices experienced sharper increases due to rising seasonal demand for heating in the Northern Hemisphere, combined with global factors such as OPEC+’s decision to maintain production levels and increased output from non-OPEC countries amid stagnant economic growth. China’s weaker demand for oil also contributed to the dynamics affecting global pricing. These factors led to an 8.8 cent increase in diesel margins and a 15.4 cent hike for petrol to cover adjustments in storage, distribution, and retail costs.

Despite these increases, fuel prices remain significantly lower than at the start of the year. Inland petrol prices for 95 Unleaded have dropped from R23.25 in January to the current R21.47, while coastal prices have fallen from R22.53 to R20.68. Diesel prices have also decreased from R21.82 inland and R21.09 at the coast at the start of 2024 to their current rates.

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The Ministry of Mineral and Petroleum Resources reiterated that South African fuel prices are closely tied to the international oil market and the rand-dollar exchange rate, given that oil is traded in dollars. The price adjustments come on the back of previous increases in November, when petrol rose by 25 cents per litre and diesel by 20 cents per litre.

Higher demand for illuminating paraffin and diesel in colder regions globally continues to impact South African prices, underscoring the interconnected nature of global oil supply and demand.