After feeling the pinch of high petrol costs, there will be a sigh of relief for motorists and other members of public as fuel prices are set to decrease next month.
The petrol adjustment is expected to come into effect on November 1.
According to the Automobile Association (AA), the drop in fuel prices is based on a unaudited mid-month data from the Central Energy Fund (CEF).
The AA put a disclaimer that it does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated.
The current price for 93 unleaded petrol is R25.22 per litre since the last increase on October 4. The price for 95 unleaded is R25.68 per litre. Both prices are for inland regions. While 93 unleaded is not available on the coast, 95 unleaded in those areas costs R24.96.
An unaudited CEF data points to a possible decrease of around R1.97 per litre for 95 unleaded petrol and R1.92 for 93 ULP (both inland) and if current trends persist those numbers could grow further.
And if the above predictions don’t suffer any reversal, 95 unleaded will decrease to an R23.70 inland and estimated R23 at the coast. The 93 ULP, which increased by R3.16 per litre in the past three months, could fall to R23.30.
Diesel however is not showing a big recovery at present, as CEF data points to a decrease in the region of 80 cents per litre for 500ppm.
Whether this will be enough to slow South Africa’s general inflation rate remains to be seen, after the diesel price had risen by around R5.40 in just three months.
“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 said.
International trends
According to the CEF’s data, more stable international oil prices are the main driver behind the potential decreases for November although the average weaker Rand-US Dollar exchange rate is shaving some of the possible decreases off what is otherwise a positive outlook.
Added AA: “The outlook for November will offer some much-needed relief to consumers, especially with the decrease of diesel. Diesel is a big input cost in major sectors such as agriculture, mining, and manufacturing. An increase [of costs in these sectors] often contribute to increased prices of basic commodities.
“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.”
