Slight relief in petrol price drop

Diesel and paraffin costs set to rise

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 yesterday‚ 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 in a statement. “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‚ whereas the landed price of petrol remained almost unchanged in October. “As a result‚ we expect the petrol price to drop by about 16 cents a litre. Unfortunately‚ diesel and illuminating paraffin will both increase by about 30 cents a litre.”

It noted that international petroleum prices have shown modest declines in the past month‚ which it describes as “a cause for optimism”.

It said if the rand maintains its relative stability‚ this could augur well for fuel prices as the Christmas season approaches. However‚ it cautioned against premature celebration. “2018 has been one of the most tumultuous years in history for SA fuel users‚ and the economy is still fragile and easily spooked.” –