The Automobile Association (AA) has confirmed that fuel prices will decrease significantly in October.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund and said that fuel prices will change as follows:
- 93 Petrol – 24c per litre decrease
- 95 Petrol – 33c per litre decrease
- Diesel – 93c per litre decrease
- Illuminating paraffin- 78c per litre decrease
The decreases to the prices of all four fuel types are despite the Rand weakening in recent days relative to the US dollar.
“The Rand’s daily average dipped as low as R16.10 to the US dollar on September 18, following a long downward trend which began in the first week of August,” said the AA.
“However, a steep jump to around R16.90 followed by a brief plateau and a further spike to nearly R17.20 caught watchers unawares, and there is rightly some concern about the Rand’s short- to medium-term trajectory.”
The AA also noted that strengthening international petroleum prices have also resulted in weaker price drops than would have otherwise been the case.
“Almost in lockstep with the Rand, diesel and petrol prices spiked, and then pulled back before starting a further climb,” said the AA.
“If this trend of a weakening Rand and rising international fuel prices continues, it could be extremely negative for South African fuel users, and we will watch further changes with interest.”
Both the weakness of the rand and the increase in oil prices are in stark contrast with general trends since early August, the AA said.
“It is too early to tell whether the spikes in both were a blip or the start of a more sustained reversal, but motorists should continue to be wary given the ongoing instability in both local and global economies,” said the AA.