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By Jason Woosey 
November 27, 2020
JOHANNESBURG – South Africans can expect slightly cheaper gasoline for the Christmas season, according to unaudited end-of-month fuel price data from the Central Energy Fund, however diesel prices will rise slightly.
According to the Automobile Association, the price of gasoline is expected to decline by about 27 cents a liter from the first week of December, while diesel will increase by 13 cents. The price of luminous paraffin will rise by about 22 cents a liter.
A liter of 95 unleaded gasoline currently costs R13.89 on the coast and R14.59 in the interior, where the cheapest unleaded 93 is available for R14.39.
2020 has been a rollercoaster ride for fuel prices, with ULP 95 starting the year at R15.52 but falling to R11.52 at the peak of the lockdown in May, before skyrocketing to R14.42 just two months later. as international Oil prices recovered thanks to the easing of Covid restrictions around the world.
January could see prices go up
Unfortunately, the signs are currently not pointing towards a better fuel price picture in 2021. Oil prices have skyrocketed in the last 10 days, causing the South African fuel price equation to turn negative, although thankfully the most positive figures at the beginning of the month. things have turned in favor of a decline in December.
The South African rand has played strongly in our favor in the past month, appreciating from R16.30 in early November to R15.16 on 27. According to the AA, the exchange rate of the rand to the US dollar is the strongest since February this year.
“The fly in the ointment is that the international price of refined fuels has been trending up over the last ten days, so we hope it doesn’t spoil the party,” AA said.
“It has been a long time since a stronger rand was able to come to the rescue of South African fuel users, and if the current trend continues, the country appears poised to improve fuel price stability as we enter 2021.”
That, of course, also depends on the price of oil continuing to trade below $ 50. At the time of writing, Brent Crude was trading at $ 47 a barrel. However, in late October, the World Bank said it expected international oil prices to average around $ 44 in 2021, which, assuming the local currency held, would certainly result in some fuel price stability for South Africans.
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