Petrol price likely to drop, but not diesel
The petrol price is expected to drop by about 16 cents a litre in November‚ the Automobile Association predicts.
“Fuel prices have moderated during October‚ with the prospect of some relief for petrol users‚ although users of diesel and illuminating paraffin will have to cough up more‚” the AA said on Wednesday.
It was commenting on unaudited fuel price data released by the Central Energy Fund.
“The exchange rate started the month badly but has since levelled out.
“The rand’s modest gains against the US dollar have helped cushion the impact of rises in the landed price of fuel in the case of diesel and illuminating paraffin.”
Both diesel and illuminating paraffin experienced substantial jumps in their landed prices‚ whereas the landed price of petrol remained almost unchanged in October.
“As a result‚ we expect the petrol price to drop by about 16c a litre‚” the AA said.
“Unfortunately‚ diesel and illuminating paraffin will both increase by about 30c a litre.”
The AA noted that international petroleum prices had shown modest declines in the past month‚ which it described as “a cause for optimism”.
It said if the rand maintained its current trajectory of relative stability‚ this could augur well for fuel prices as the Christmas season approached.
However‚ the AA cautioned against premature celebration.
“This has been one of the most tumultuous years in history for South African fuel users‚ and the economy is still fragile and easily spooked‚” it said.
Consumers have experienced record high fuel prices due to a rising oil price and weak rand.