Mid-month data from the Central Energy Fund points to a sizeable petrol price hike in December 2022, with diesel drivers on course for a slight reprieve after two months of increases.
Local fuel price fluctuations are impacted by two main factors – the international price of petroleum products, driven mainly by oil prices, and the rand/dollar exchange rate used to purchase these products. Like most global central banks – South Africa included – the Fed has been on a significant hike cycle and has remained firm that it would continue as long as inflation remains high. However, it did indicate that rate hikes might slow down.
Factors favouring a higher oil price include supply constraints and rising demand, as Europe seeks fuel sources amid ongoing sanctions against Russian oil heading into winter, and the US reels from OPEC+ and Saudi Arabia’s intention to cut millions of barrels.