As the holiday season approaches, motorists in South Africa face a significant fuel price hike, adding pressure to travel budgets. The Automobile Association (AA) has issued a warning based on unaudited figures from the Central Energy Fund (CEF), indicating adjustments in fuel prices set to take effect from midnight on Tuesday, 3 December.

Fuel Price Overview: What to Expect

The fuel price outlook for December presents mixed news for drivers. While a slight decrease of around 7 cents per litre for 93-grade petrol is anticipated, 95-grade petrol is projected to rise by 3 cents per litre. However, adjustments to industry margins, governed by the Regulatory Accounting System (RAS), could override these gains, leading to price increases for both petrol grades.

Of greater concern for motorists is the steep rise in diesel prices. A hike of approximately 48 cents per litre is expected, along with a 43-cent per litre increase for illuminating paraffin. This surge will likely strain household budgets and contribute to higher consumer prices, as diesel is a key input for goods and service transportation.

Causes of the Price Increases

Several factors are driving the increase in fuel prices. First, fluctuations in international product prices for unleaded fuel since mid-November have played a role. Additionally, the Rand’s depreciation against the US dollar early in the month has added to the upward pressure on fuel costs.

The AA notes that the RAS, which sets margins for petrol wholesale, retail, and distribution, could offset the minor reductions in petrol prices and contribute to under-recoveries, pushing the overall price higher.

Budgeting for the Holidays

The AA advises motorists to be proactive in adjusting their budgets for the holiday season. “We urge consumers to monitor their fuel usage closely and budget according to the new fuel prices,” says the Association. Drivers can take practical steps to maximise fuel efficiency, such as maintaining vehicles, planning routes to avoid heavy traffic, and driving at consistent speeds.

Despite the anticipated price increases, the AA does not expect these changes to deter most South Africans from embarking on their year-end journeys. However, the higher costs are likely to impact travel plans and could prompt budget-conscious consumers to limit the distances they travel or reconsider certain trips.

Fuel Price Hike: Tips for Safe and Efficient Travel

With increased traffic expected on major routes, the AA stresses the importance of being well-prepared for long-distance travel. A well-maintained vehicle and a mindful approach to driving are essential. Motorists should remember that the road will be busier than usual, with thousands of fellow travellers sharing the route.

The AA advises drivers to:

Maintain their vehicles to ensure optimal fuel efficiency.
Drive safely and considerately, obeying traffic rules and being mindful of other road users.
Take regular breaks every 200km or two hours to stay alert and prevent fatigue.

The AA’s message is clear: while the festive season is a time for celebration and travel, motorists need to budget carefully for higher fuel costs and prioritise safe, efficient driving practices.