A substantial petrol price cut is on the cards for October, while the diesel increase will be much smaller than expected.
FOLLOWING the spate of brutal fuel price increases earlier in the year after oil prices spiked, fuel prices are starting to come down and South African motorists can look forward to another petrol price reduction in October.
The price of 95 unleaded petrol is looking likely to decrease by around R1.07 per litre, while 93 unleaded should come down by around 95c.
Diesel, on the other hand, is looking set for slight increases of 5c for 500ppm and 10c for 50ppm. However, the outlook has improved since earlier in the month when a 75c increase was forecast.
These predictions are based on late-month unaudited data released by the Central Energy Fund and the final pricing structure could still change because of factors such as the slate levy. The official October fuel prices are likely to be announced early next week.
Assuming petrol does come down by around R1.07 per litre, South Africans will now pay around R21.60 for a litre of 95 unleaded at the coast and R22.31 in the inland regions.
International oil prices have come down since the beginning of September, with Brent Crude trading at about $85 per barrel in late September.
However, the rand has suffered on the back of record load shedding this month, dropping in value from R17.13 to the US dollar at the beginning of the month to R18.15 on September 27.
Even though prices are coming down, the Automobile Association (AA) remains concerned about the overall impact that high prices are having on consumers.
“The price hikes in June and July will continue to impact the economy, and on the financial situation of all South Africans. A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes,” the AA said.
