Another reduction in fuel price possibly on the horizon
Even thought the petrol prices seam set to decrease, diesel prices indicate a bleaker picture.
Lower international oil prices may well motivate a decrease of R1.14 to R1.24 in the petrol price for October. Diesel users will pay more, though, between 34c and 50c per litre.
“At this mid-month stage, the outlook for petrol is positive. But the expected price increase for diesel is 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.
The association further noted that 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.”
Source: AA
