CompareGuru Financial Services is an authorised financial services provider FSP. 47696
The Automobile Association has predicted a mixed bag of fuel price changes for the festive season. Some motorists will be happy. Others, not so much.
A divergence in the international prices of refined fuels is reportedly to thank for a bit of an unusual fuel price prediction for December. This is according to the Automobile Association, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The prices of refined petrol and diesel, which usually track each-other’s movements, but with a fair gap between their prices, have showed an altogether different picture recently.
According to the association, this variance between refined petrol and diesel prices can usually be attributed to changes in refining capacity and demand, especially as the Northern Hemisphere heads into winter, and demand for heating fuels increases.
An extended period of rand stability, however, with the rand/US dollar exchange rate remaining fairly flat throughout November, has proven a bit of a saving grace - contributing to a drop of around 6 cents per litre.
In the absence of any unexpected political or economic shocks, we are cautiously optimistic about fuel price stability heading into 2020.
It is expected that the price of petrol will increase by around 11 cents per litre over the festive season, while the price of diesel will see a substantial decrease of around 23 cents per litre.
The price of illuminating paraffin, which tends to move up and down with the price of diesel, will also decrease by around 25 cents per litre.
It has to be noted that the Regulatory Accounting System (RAS) Industry margin (adjusted on the first Wednesday of every December) should also be factored into these predictions, but it is yet unknown by exactly how much these will be adjusted.
We’ll have to wait for the official fuel price adjustment to be released by the Department of Energy, which is expected to be published any time before the changes come into effect on Wednesday, 4 December.
So, something to look forward to for diesel motorists, perhaps. Not so much for the petrol-heads.
In the meanwhile, we can try to save on our fuel where we can by planning our trips ahead of time, combining trips, carpooling and, of course, avoiding heavy traffic.
CompareGuru knows what's good - you'll never need another insurance comparison tool again!
Sign up to our newsletter to stay up-to-date on our latest tips on how to get the best out of your insurance, what insurance really means and how to avoid any pitfalls along the way.
CompareGuru has you covered.