Petrol price to decrease but diesel set to rise in October

Motorists driving petrol cars face another fuel price decrease next month but diesel owners won't be so lucky.

The wholesale price of high-sulphur 500ppm diesel is set to rise by 43c/l and low-sulphur 50ppm by 50c/l on October 5, according to the mid-month outlook by the Central Energy Fund (CEF). This is based on the international product prices for diesel increasing during the period under review.

It follows decreases of 56c for high-sulphur and 46c for low-sulphur diesel at the beginning of September.

Petrol is set for another decrease in October, with both grades (93 and 95) set to go down by R1.24/l.

“At this mid-month stage, the outlook for petrol is positive. But the expected price increases to diesel are concerning as this is the fuel mainly used in the mining, manufacturing and agricultural sectors, and an increase here will lead to increased product prices down the line. Of course, this is only mid-month data so the picture could change before the official adjustments for October are made,” said the AA.

According to the CEF’s data, average lower international oil prices are playing a significant role in the expected decreases to petrol but less so in the case of diesel.

“Unfortunately, these lower oil prices are being offset by a weaker rand since the start of September. At the end of August, the rand was trading at R16.95 to the US dollar but is trading in a band of around R17.45 to R17.50 to the US currency. This is taking some shine off the impact of lower oil prices,” said the AA.

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