Christmas is meant to be a time of joy, cheer and good news, but it seems motorists will need to dig deep into their pockets this festive season if they want to hit the road for the holidays.

According to The Citizen, many were hoping the drop in fuel prices would continue into the holiday period. Data from the Central Energy Fund (CEF) paints a grim and painful picture.

Data from the CEF shows increasing under-recoveries for all fuel grades, with numbers in the red.

Fuel price

The forecast on Monday, November 17, points to petrol price hikes of about 19c/litre for 93-octane and 23c/litre for 95-octane. Motorists using diesel-powered vehicles face an even steeper hike. The price of diesel (0.05% sulphur) is expected to increase by 69c/litre, while diesel with (0.005% sulphur) is set to jump by 84c/litre.

Illuminating paraffin is expected to spike by 75c/litre.

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What’s pushing fuel prices up?

The potential hike is being driven by several factors, including higher global Brent Crude Oil prices due to United States (US) sanctions on Russian oil.

Last month, the oil price decreased from $67.16 to $64.14 during the period under review due to oversupply driven by increased global production, and uncertainty caused by continued trade tensions.

While the rand appreciated on average against the US dollar (USD) from R17.49 to R17.29 per USD in October, it is now showing signs of decline, which could lead to a possible hike in fuel prices.

Current prices:

Unleaded petrol costs R20.97 per litre, while 95 unleaded petrol costs R21.12 per litre.

The wholesale price of 0.05% (500 PPM) diesel is R19.13 per litre, and 0.005% (50 PPM) costs R19.20 per litre.

The Department of Mineral Resources and Energy (DMRE) is expected to make a final determination on fuel prices by the end of November.