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Fuel price outlook: 'Petrol price down, but diesel goes up for November' - AA

2018-10-31 12:52

Image: iStock

Fuel prices have moderated during October, with the prospect of some relief for petrol users, although users of diesel n will have to cough up more, this is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund. 

"The exchange rate started the month badly but has since levelled out," the AA says. 
"The Rand's modest gains against the US dollar have helped cushion the impact of rises in the landed price of fuel in the case of diesel and illuminating paraffin."

READ: Petrol price outlook - More fuel pain at the pumps for South African motorists - AA

Both diesel and illuminating paraffin experienced substantial jumps in their landed prices, whereas the landed price of petrol remained almost unchanged in October.

"As a result, we expect the petrol price to drop by about 16 cents a litre," the AA says. "Unfortunately, diesel and illuminating paraffin will both increase by about 30 cents a litre."

The Association notes that international petroleum prices have shown modest declines in the past month, which it describes as 'a cause for optimism'. 
It also added that if the Rand maintains its current trajectory of relative stability, this could augur well for the fuel prices as the Christmas season approaches. However, the motoring body cautioned against premature celebration. 
"2018 has been one of the most tumultuous years in history for South African fuel users, and the economy is still fragile and easily spooked," the Association concludes.


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