Motoring News

SA fuel prices heading for downslope

JOHANNESBURG, South Africa – Petrol and diesel prices are likely to fall at month-end (Oct 2020) but illuminating paraffin is likely to cost a few cents more.

The view is that of the South African Automobile Association in a comment on unaudited mid-month fuel price data released by the South African Central Energy Fund.

The AA forecasts that petrol is poised for a reduction of 14 to 17 cents a litre, diesel by about 20 cents. The only upward mover will be illuminating paraffin with current data showing five cents a litre.

MID-MONTH SPIKE

The AA added: “So far in October we have seen both Rand/US dollar exchange rate and international oil prices working in South Africa’s favour.

After the large spike in the daily exchange rate in the second half of September 2020 the rand has returned to its previous leisurely strengthening, improving from around R16.70 to the dollar at the start of October to its current level of about R16.55.”.

Despite some fluctuations in international oil prices, basic fuel prices were trending slightly downwards.

The AA added that some stability seemed to be returning to oil as world markets have begun to find equilibrium again.

Final word from the AA: “We hope these trends will consolidate towards month-end, bringing much-needed relief to road users countrywide.”

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