The Automobile Association says fuel prices have “moderated” during October, with the prospect of some relief for petrol users. That said, users of diesel look set to have to cough up more.
“The exchange rate started the month badly but has since levelled out,” the AA said, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“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.”
Both diesel and illuminating paraffin experienced substantial jumps in their landed prices, whereas the landed price of petrol remained almost unchanged in October, the AA said.
“As a result, we expect the petrol price to drop by about 16 cents a litre,” the AA said. “Unfortunately, diesel and illuminating paraffin will both increase by about 30 cents a litre.”
The Association noted international petroleum prices had shown modest declines in the past month, which it described as “a cause for optimism”.
It also added that if the rand maintained its current trajectory of relative stability, this could augur well for the fuel prices as the year-end season approaches. However, the organisation 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 AA warned.