Further decrease in petrol and diesel prices expected

Motorists could be in for another fuel price reprieve next month, with petrol expected to fall between 14 and 17 cents a litre, and diesel down by 20 cents a litre.

This was announced by the Automobile Association of South Africa (AA) responding to the unaudited mid-month fuel price data, released by the Central Energy Fund.

It is a different picture for illuminating paraffin, however, with the current data showing an increase of around five cents per litre.

‘So far, in October, we have seen both the rand/US dollar exchange rate, and international oil prices, working in South Africa’s favour,’ said AA spokesperson, Layton Beard.

‘After a spike in the daily exchange rate in the second half of September, the rand has returned to its previous leisurely strengthening trajectory, improving from around R16.70 to the dollar at the start of October to its current level of R16.55.’

Beard said there seems to be some stability in oil prices as the world’s markets begin to find their equilibrium again.

‘We hope these trends consolidate towards month-end, bringing much-needed relief to fuel users countrywide,’ he said.

Earlier this month, the petrol decreased by 23 cents per litre, diesel came down by 90 cents per litre, and illuminating paraffin decreased by 76 cents per litre.

‘The rand appreciated, on average, against the US dollar during the period under review,’ said Minister of Mineral Resources and Energy, Gwede Mantashe.

‘This led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin of about 17.93, 16.42 and 14.75 cents per litre, respectively.’

HAVE YOUR SAY Like our Facebook page and follow us on Twitter.

For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer