Petrol Price Decrease Expected In October, Diesel Going Up

Petrol users could see another sizable reduction in their fuel price in October while diesel users are facing an increase, the Automobile Association (AA) said on Friday.

The AA said unaudited mid-month data of the Central Energy Fund (CEF), shows that petrol was expected to decrease by between R1.14 and R1.24 a litre, while diesel was expected to increase by between 43c and 50c a litre in October.

“At this mid-month stage, the outlook for petrol is positive. But the expected price increases to diesel are concerning as this is the fuel mainly used in the mining, manufacturing, and agricultural sectors, and an increase here will lead to increased product prices down the line,” the AA said.

“Of course, this is only mid-month data so the picture could change before the official adjustments for October are made.”

CEF’s data indicates that average lower international oil prices are playing a significant role in the expected decreases of prices of petrol but less so in the case of diesel.

“Unfortunately, these lower oil prices are being offset by a weaker Rand since the start of September,” the AA said.

“At the end of August, the Rand was trading at R16.95 to the US dollar but is trading in a band of around R17.45 to R17.50 to the US currency. This is taking some shine off the impact of lower oil prices.”