Motorists may breathe a sigh of relief as the expected petrol price for November is predicted t0 drop by 16 cents instead of the previously predicted three-cent drop, but diesel and paraffin prices may increase.
This is according to an unaudited month-end fuel price data release by the Central Energy Fund. The decrease would be the first in eight months, relieving some pressure on the wallets of locals.
The predicted decrease in petrol may be attributed to the rands modest gain against the US dollar, but the same cannot be said for the cost of diesel and paraffin.
“Both diesel and illuminating paraffin experienced substantial jumps in their landed prices, whereas the landed price of petrol remained almost unchanged in October,” said the Automobile Association statement
Diesel and paraffin are expected to increase by a hefty 30 cents a litre.
The Automobile Association (AA) explains that international petrol prices have shown a decrease but cautions locals that the strength of the rand may shift at any time causing drastic price changes.
“We do need to note that international petroleum prices have shown modest declines in the past month, which could be seen as ‘a cause for optimism. If the rand maintains its current trajectory of relative stability, this could augur well for the fuel prices as the Christmas season approaches. However, we caution against premature celebration,” said AA.
With South Africans having to dig deep into their pockets as expenses increase, the predicted decrease in petrol prices may provide some aid.
The AA says the economy is fragile and subject to dramatic changes.
This article was written by Ishani Chetty and sourced from CapeTown Etc.; the original publication can be viewed here.