Fuel price uncertainty extends into November

15 October 2019 - 12:33 By AASA and Motoring Reporter
With the rand trending stronger against the dollar recently, it is possible the picture could improve, says the AA.
With the rand trending stronger against the dollar recently, it is possible the picture could improve, says the AA.
Image: ayphoto / 123rf

Fuel prices are showing a mixed picture for November, with some predicted to climb as others fall. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

In an indication of how flat the month has been to date, the AA noted that different fuels are heading in different directions. For instance, 93 octane petrol is showing a 5c/l  drop, while 95 octane petrol is set to rise by 10c/l. Diesel is forecast to climb by 2c, while illuminating paraffin looks set for a 2c decrease.

“The rand, which lost considerable ground against the US dollar in the second half of September, has stabilised around the R15.20/$ mark and has generally offset slight rises in international oil prices. In its turn, oil has retreated from the price spike arising from last month's Saudi oil refinery attacks, giving a more stable picture for the motorist,” said the AA.

The association said, at first glance, the oil price seems to be finding its way back to normal, and the rand, as ever, is a bellwether of the current mix of poor economic conditions and reticence by investors.

“The rand has trended stronger against the dollar over the past few days, so it's possible the picture could improve by month end,” concluded the AA.


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