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Mixed outlook for fuel prices in October


The Automobile Association of South Africa says petrol users could see another sizable reduction in their fuel price in October while diesel users are facing an increase.

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

"At this mid-month stage, the outlook for petrol is positive," says the AA.

"However, 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."

The AA notes that this is only mid-month data so the picture could change before the official adjustments for October are made.

It says lower oil prices being experienced globally have been 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 and is currently trading in a band of around R17.45 to R17.50 to the US currency.

"This weaker rand to the US dollar is taking some shine off the impact of lower oil prices," says the AA.