Motoring

Fuel Prices Poised for November Decrease

Published

6 months ago

October 18, 2023

Amid a recent surge in global oil prices due to the escalating Israel-Gaza conflict, early projections indicate that South African motorists might experience lower fuel prices in November. Data from the Central Energy Fund (CEF) suggests a potential petrol and diesel price relief on the horizon.

South African motorists haven’t seen a drop in fuel prices since July, with diesel experiencing cumulative increases of R5.71 per litre since June. However, the latest data from the Cef shows an over-recovery, suggesting potential price cuts of approximately R1.60 for petrol grades and up to 30 cents for diesel.

The projections for November include a substantial decrease in fuel prices:

Petrol 93: A decrease of 169 cents per litre (R1.69).
Petrol 95: A decrease of 173 cents per litre (R1.97).
Diesel 0.05%: A decrease of 43 cents per litre (R0.78).
Diesel 0.005%: A decrease of 36 cents per litre (R0.36).
Illuminating paraffin: A decrease of 44 cents per litre (R0.74).

Also read: Fuel Prices Soar: South Africans Feel the Pinch

The Automobile Association (AA) noted that these significant decreases are arriving at a crucial time for South Africans who have been grappling with rising fuel and food costs. The AA also highlighted that stable international oil prices are the primary factor contributing to the potential price reductions for November. However, the rand’s weakening against the US dollar exchange rate somewhat offsets these decreases.

The upcoming November outlook will bring much-needed relief to consumers, particularly with the decrease in diesel costs, significantly impacting key sectors like agriculture, mining, and manufacturing. Elevated diesel prices can lead to higher prices for essential commodities.

Nonetheless, the AA issued a cautionary note, mentioning that there are still two weeks before the official price adjustments for November. The ongoing Israel-Gaza conflict could impact the positive outlook due to its influence on the upward trajectory of oil prices.

Source: Price of fuel set to decrease in November

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