Big petrol and diesel price cuts next week
The Department of Mineral Resources and Energy has published the official fuel price changes for December 2023, with big petrol and diesel price cuts in store.
Motorists can expect petrol prices to be reduced by 65c per litre and the price of diesel to be cut by between R2.35 and R2.41 per litre.
Lower crude oil prices are partly behind the lower petrol, diesel, and illuminating paraffin prices in December.
Diesel and illuminating paraffin prices declined more than petrol because of the increased production of middle distillates by refiners.
The increased production was aimed at catering for the expected increase in demand during the upcoming winter season in the Northern Hemisphere.
LPG prices increased due to the increase in the prices of propane and butane as a result of seasonal demand.
These factors led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 66.15 c/l, 192.98 c/l and 147.46 c/l, respectively.
The stronger local currency also helped to reduce prices. The rand appreciated from R19.16 to R18.55 during the period under review.
This means South Africa paid less in its local currency for oil, resulting in lower input costs for petrol, diesel and illuminating paraffin.
The table below shows the price changes that will be reflected at the pumps starting Wednesday, 6 December 2023.
| Inland | November Official | December Official |
| 93 Petrol | R23.44 | R22.79 |
| 95 Petrol | R23.90 | R23.25 |
| Diesel 0.05% (wholesale) | R24.17 | R21.82 |
| Diesel 0.005% (wholesale) | R24.40 | R21.99 |
| Illuminating Paraffin | R17.95 | R16.24 |
| LPGAS (per kg) | R35.75 | R37.42 |
| Coastal | November Official | December Official |
| 93 Petrol | R22.72 | R22.07 |
| 95 Petrol | R23.18 | R22.53 |
| Diesel 0.05% (wholesale) | R23.44 | R21.09 |
| Diesel 0.005% (wholesale) | R23.71 | R21.30 |
| Illuminating Paraffin | R17.02 | R15.31 |
| LPGAS (per kg) | R33.16 | R34.46 |
Impact of lower fuel prices
Lower petrol and diesel prices have a far wider impact than merely making South Africans who travel a lot happy.
South Africa’s economy is highly reliant on road transport, and fuel prices impact all sections of the economy.
Fuel prices directly impact the cost of products transported by roads, which in turn impacts inflation.
Road Freight Association CEO Gavin Kelly said when the fuel price climbs, people are going to pay more for the things that are transported by road.
Kelly said fuel now constitutes over 50% of the operational cost of moving a truck, which illustrates the impact of price changes on transporting goods.
Higher fuel costs also cause higher inflation, which raises the chances of the South African Reserve Bank (SARB) increasing interest rates again.
Many businesses rely on diesel generators to operate, and the diesel price cuts will reduce their costs to keep the lights on during load-shedding.
The expected fuel price decrease in December is good news and may impact the SARB’s interest rate decision.
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