Motorists have been feeling the burn as petrol prices rise higher and higher.

That last hike really hurt.

So you’ll be happy to hear that there may be some good news on the horizon.

Recent data predicts that things could turn around in December with a R1,50 petrol price cut in December.

Break out the champagne, because, when you’re in a recession, every cent counts.

Here’s Businesstech:

Based on the mid-month data published by the Central Energy Fund, movements in the petrol price currently show an over-recovery of 151 cents and 154 cents for 93 and 95 octane, respectively, and 92 cents for diesel.

Illuminating paraffin shows a drop of 85 cents.

If market conditions remain stable for the remainder of the month – the petrol price could drop to its lowest point since June.

The movement in petrol prices has a lot to do with positive movements in international petroleum prices after a slump in oil prices.

International oil prices have continued to decline in November, dipping well below $70, to $67 a barrel.

Currency movements have also worked in our favour, with the average rand/dollar exchange in a stronger position to date in November.

Notably, the rand dipped below R14 to the dollar ahead of the US elections earlier in the month, but has since come off that level, trading at around R14.25.

Expert, Bianca Botes predicts that the local unit will trade in the R14,20 to R14,60 range over the short term.

“While there is little momentum to really act as a catalyst for further rand strength, the currency has been able to outperform other emerging market currencies,” she said.

In November, petrol prices showed an over recovery of 22 cents – however, government absorbed the price drop through a slate levy to balance the country’s slate account.

The Department of Energy will have the final say over petrol prices and will announce any official changes at the end of the month.

Here’s to hoping that things work out.

South Africans could use some good news going into the festive season.

[source:businesstech]