Petrol price to drop 16c, but diesel gets a 30c hike
The good news for motorists is that the petrol price is due to drop by about 16c a litre next month. However, diesel and illuminating paraffin will be hiked by about 30c.
This means that the price of 95 octane unleaded in inland areas would drop to R16.92, with 93 octane unleaded reducing to R16.69, and the wholesale price of diesel rising to R15.99 for 50ppm and R15.94 for 500ppm.
The Automobile Association (AA) says that both diesel and illuminating paraffin experienced substantial jumps in their landed prices, whereas the landed price of petrol remained almost unchanged in October, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
South Africans have been hard hit by fuel prices in 2018 due to the price of oil and the Rand’s weakening against the US dollar, and October's increases hiked fuel prices to record levels.
The price of petrol has climbed since the beginning of the year, from R14.20 to R16.85 for 93 octane, and from R14.42 to R17.08 for 95 octane. Diesel has risen from R12.77 (50ppm) and R12.74 (500ppm) in January to the current R15.69 (50ppm) and R15.64 (500ppm), and the latest increase will push it over the R16 a litre mark.
Economists previously warned that motorists should prepare to pay R17.90 by the end of 2018 and up to R20 by the end of 2019. However, the AA now notes that international petroleum prices have shown modest declines in the past month, which it describes as 'a cause for optimism'.
It also added that if the Rand maintains its current trajectory of relative stability, this could augur well for the fuel prices as the Christmas season approaches. However, the motoring body cautioned against premature celebration.
"2018 has been one of the most tumultuous years in history for South African fuel users, and the economy is still fragile and easily spooked," the AA says.
The new prices are due to come into effect on Wednesday November 7.