Fuel price relief on the horizon

Motorists could be in for some relief at the petrol pumps next month, with fuel prices expected to decrease by almost R2 based on unaudited mid-month data from the Central Energy Fund (CEF), says the Automobile Association (AA).

The reprieve would come after steep price increases for several months this year, including hikes of between R1.08 and R1.96 in October.

According to the AA, the current data shows that ULP95 is set to decrease by around R1.97/litre and R1.92/l for ULP93. Diesel, which has been on an upward trajectory in recent months, is set for a decrease of around 78c/litre and illuminating paraffin by around 74c/l.

“These significant decreases will come at a very critical time for South Africans who have had to dig deeper into their pockets to fill up their vehicles and food trolleys with the previous cycles of fuel increases,” said the AA.

More stable international oil prices are the main drivers behind the potential decreases for November, the AA said.

“The outlook for November will offer some much-needed relief to consumers, especially with the decrease of diesel which is a big input cost in major sectors such as agriculture, mining, and manufacturing, and an increase here often contributes to increased prices of basic commodities. There are still two weeks before the official adjustment for November which could still be negatively affected by the upward trajectory of oil prices due to the ongoing conflict in Israel.”

Adjusted fuel prices come into effect on November 1. An announcement on the official adjustment will be made by the Department of Mineral Resources and Energy (DMRE).

Cape Times