Drone strike cuts into anticipated petrol price cut

There has been mixed news on the fuel price from on Tuesday amid reports of the missile strikes in the Middle East.

Responding to unaudited data released by the Central Energy Fund on Tuesday, the Automobile Association (AA) said this past weekend’s drone strike on an oil refinery in Saudi Arabia had brought down a forecasted decrease.

In a statement, the AA said that while the anticipated hike in the price of diesel was still expected, it would now tick up further by 13 cents a litre, with illuminating paraffin set to rise by eight cents. Meanwhile petrol, which on Friday was still slated to drop, will now only be a projected five cents cheaper for 95 and 20 cents for 93.

“The US President has authorised the release of oil from that country’s Strategic Petroleum Reserve. This should calm some oil price nerves, but the potential for copycat attacks on other oil installations now that their vulnerability is clear remains a concern,” the AA said.

“We believe government should review short-term risk mitigations, including increased biofuel production, electric vehicles, and better public transport. Given the recent developments, these mitigations should now become urgent priorities for government.”

South Africa’s own fuel reserves remain subject to an ongoing legal case after they were inexplicably sold to three private companies at a loss to the state.

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