Petrol price expected to drop, diesel to go up in October

Despite load shedding and deliberate power cuts by the dark lords at Megawatt Park, there may be some good news for South Africans, with another possible reduction in the prices of petrol in October.

The country has seen a number of sharp petrol price increases that have left many motorists burning holes in their pockets as they try to grapple with the volatile economic climate to make ends meet.

Petrol price forecast

According to unaudited mid-month data of the Central Energy Fund (CEF), petrol is expected to decrease by between R1.14 and R1.24 a litre.

Diesel is expected to increase by between 43c and 50c a litre in October.

Automobile Association

The Automobile Association (AA) said the outlook for petrol at mid-month stage is positive.

“But the expected price increases to diesel are concerning as this is the fuel mainly used in the mining, manufacturing and agricultural sectors, and an increase here will lead to increased product prices down the line.”

Lower oil price

The AA said that, according to the CEF’s data, average lower international oil prices are playing a significant role in the expected decreases to petrol, but less so in the case of diesel.

“Unfortunately, these lower oil prices are being offset by a weaker Rand since the start of September.

“At the end of August, the Rand was trading at R16.95 to the US dollar but is trading in a band of around R17.45 to R17.50 to the US currency. This is taking some shine off the impact of lower oil prices.”

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While the drop in the petrol price decreases are likely to fluctuate, the Department of Mineral Resources and Energy (DMRE) will confirm actual prices before the first Wednesday of next month.

September petrol price

Earlier this month, South African’s breathed a rare sigh of relief after the DMRE announced that both grades of petrol – 93 and 95 octane – would decrease by R2.04 per litre

The prices of diesel (0.05% sulphur) also droppd by R0.56 per litre, while diesel (0.005% sulphur) went down by R0.46 per litre.

Cost of living

While the drop in the petrol price brings much-needed relief to motorists, experts say it won’t make much difference to their pockets.

Economist Dawie Roodt told The Citizen that the decreases in petrol prices won’t have a big effect on motorists’ pockets.

“When you fill up, you might pay R100 less on a tank, but the rest of the economy won’t be affected because price changes take a while to filter through the economy.

“The previous fuel increases have not worked through the economy yet,” Roodt said.

ALSO READ: Petrol price: Some relief, but don’t expect cost of living to reduce just yet