Petrol price will go... down

31 October 2018 - 13:52 By Timeslive
The Automobile Association said that international petroleum prices have shown modest declines.
The Automobile Association said that international petroleum prices have shown modest declines.
Image: Elvis Ntombela

The petrol price is expected to drop by about 16 cents a litre in November‚ the Automobile Association predicts.

"Fuel prices have moderated during October‚ with the prospect of some relief for petrol users‚ although users of diesel and illuminating paraffin will have to cough up more‚" the AA said on Wednesday‚ commenting on unaudited fuel price data released by the Central Energy Fund.

"The exchange rate started the month badly but has since levelled out‚" the AA said. "The rand's modest gains against the US dollar have helped cushion the impact of rises in the landed price of fuel in the case of diesel and illuminating paraffin."

Both diesel and illuminating paraffin experienced substantial jumps in their landed prices‚ whereas the landed price of petrol remained almost unchanged in October‚ the association said in a statement.

"As a result‚ we expect the petrol price to drop by about 16 cents a litre‚" the AA said. "Unfortunately‚ diesel and illuminating paraffin will both increase by about 30 cents a litre."

The association noted 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 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‚" said the AA.

South African consumers have experienced record high fuel prices due to a rising oil price and weak rand‚ with the price of 95 octane in Gauteng at R17.08 and 93 at R16.85 in October 2018.

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