Drivers in South Africa are preparing for another fuel price increase set to take effect on Wednesday, December 4. This rise presents a hurdle for those planning long-distance trips to holiday destinations during the festive season.

The Department of Minerals and Energy (DMRE) announced in a statement that the prices for both 93-octane unleaded petrol (93 ULP) and 95-octane unleaded petrol (95 ULP) will escalate 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 increase by 55.88 cents per litre.

The DMRE cites the hike in fuel prices to international petroleum product costs and the depreciation of the rand against the dollar, which moved from R17.53 to R17.93 during the evaluation period.

These factors have played a significant role in escalating the basic fuel prices for both petrol and diesel.

Read: Prepare for increased fuel prices in November

Following Donald Trump’s reelection as US president on November 6, the rand has experienced further depreciation over the past month.

Since the US elections, the local currency has largely traded above the R18 mark, a notable drop from R17.49 prior to the election.

This latest fuel price increase for December marks the second consecutive month of rises. The hike in November was the first since May 2024.

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The soaring fuel prices present a significant risk to South Africa’s inflation trajectory. In recent months, the nation has made considerable strides in managing inflation, with the consumer price index (CPI) dropping significantly to 2.8% in October from 3.8% in September.

According to Casey Sprake, an investment analyst at Anchor Capital, declining fuel prices have been pivotal in this reduction of inflation.

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She cautions in a company note that ongoing volatility in global fuel markets is expected to introduce uncertainty into South Africa’s inflation outlook in the near term.

“The rand’s sensitivity to global risk aversion continues to be a major concern, particularly in light of geopolitical tensions or shifts in international monetary policy,” she notes.

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