Despite a spike in global oil prices this week due to the escalation of the Israel-Gaza conflict into war, early projections point to the possibility of lower fuel prices at the beginning of November.
Data from the Central Energy Fund (Cef) points to a petrol and diesel price relief on the horizon for South African motorists.
The last time South African motorists felt relief at the pumps was back in July. Diesel has seen cumulative hikes of R5.71 per litre since June.
The latest daily snapshot from the Cef is showing an over-recovery which points to potential price cuts of about R1.60 for both grades of petrol, and up to 30 cents for diesel.
- Petrol 93: Decrease of 169 cents per litre (R1.69).
- Petrol 95: Decrease of 173 cents per litre (R1.97).
- Diesel 0.05%: Decrease of 43 cents per litre (R0.78).
- Diesel 0.005%: Decrease of 36 cents per litre (R0.36).
- Illuminating paraffin: Decrease of 44 cents per litre (R0.74).
The Automobile Association (AA) said: “These significant decreases will come at a very critical time for South Africans, who have had to dig deeper into their pockets to fill up their vehicles and food trolleys, with the previous cycles of fuel increases.”
The AA added that the Cef’s data showed more stable international oil prices as the main driver behind the potential decreases for November.
“However, the average weaker rand versus the US dollar exchange rate is shaving some of the possible decreases off what is otherwise a positive outlook.
“The outlook for November will offer some much-needed relief to consumers, especially with the decrease of diesel which is a big input cost in major sectors such as agriculture, mining, and manufacturing, and an increase here often contributes to increased prices of basic commodities,” the AA said.
However, it warned there are still two weeks before the official adjustment for November ‘which could still be negatively affected by the upward trajectory of oil prices due to the ongoing conflict in Israel’.
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