The Automobile Association says petrol users could see another sizable reduction in their fuel price in October while diesel users could face an increase.
According to unaudited mid-month data of the Central Energy Fund (CEF), petrol is expected to decrease by between R1.14 and R1.24 a litre while diesel is expected to increase by between 43c and 50c a litre in October.
PETROL OUTLOOK FOR OCTOBER
While fuel prices were projected to come down by more in September, the final price cut confirmed by the Energy Department saw a drop of R2.04 per litre for petrol, and between 46 and 56 cents per litre for diesel.
The Automobile Association said the outlook for petrol is positive, however the expected price increases to diesel are concerning as this is the fuel mainly used in the mining, manufacturing and agricultural sectors. 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,” the association said.
FUEL PRICE OUTLOOK BY CEF
- Petrol 95/93 will drop by R1,10
- Diesel 0.05% will go up by R0.19 cents
- Diesel 0.005% will go up by R0.24 cents
- Illuminating Paraffin will drop by R0.45 cents
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 have been 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.”Automobile Association
This week the Rand traded at R18.18 against the US Dollar.