November’s anticipated petrol price drop fuels hope for motorists

After two steep fuel price increases, there may be some relief for motorists at the filling station next month.

According to the Automobile Association (AA), fuel prices are set to decrease in November, based on unaudited mid-month data from the Central Energy Fund (CEF).

Forecasted prices

“The current data indicates ULP95 is set to decrease by around R1.97 per litre and R1.92 for ULP93. Diesel, which has been on an upward trajectory for the past couple of months, is set for a decrease of around 78c per litre. The unaudited data is also pointing to a decrease to the cost of illuminating paraffin of around 74c.

“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.

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Relief

The AA said the CEF’s data showed more stable international oil prices as the main driver behind the potential decreases for November.

“[However], the average weaker Rand-US Dollar exchange rate is shaving some of the possible decreases off what is otherwise a positive outlook.

“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,” AA said.

It warned 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”.

Officially adjusted fuel prices come into effect on 1 November, the first Wednesday of November. The official adjustment is announced by the Department of Mineral Resources and Energy.

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