SPRING came with some good news for Mzansi motorists as the price of fuel went down at the beginning of September.
If factors remain as they are, motorists could see another sizeable reduction in their fuel price in October while diesel users are facing an increase, said the Automobile Association (AA).
According to unaudited mid-month data of the Central Energy Fund (CEF), petrol is expected to decrease by between R1,14 and R1,24 a litre while diesel is expected to increase by between 43c and 50c a litre in October.
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“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 will lead to increased product prices down the line. Of course, this is only mid-month data so the picture could change before the official adjustments for October are made,” said the AA.
CEF’s data suggests the average lower international oil prices play a significant role in the expected decreases to 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. 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,” the AA added.
