Another sizeable reduction in the price of petrol is in the pipeline for motorists, but truckers must brace for a hike in the price of diesel according to the latest data released by the Central Energy Fund (CEF).
The CEF’s mid-month unaudited data indicates that motorists could benefit from another significant petrol price cut in October, but the price of diesel is expected to rise due to an under-recovery.
The data showed that Petrol 95 is reflecting an over recovery that could lead to a decrease of as much as 131 cents per litre and Petrol 93 is also showing an over recovery of 122 cents per litre.
Unfortunately, the data reflects the diesel price (0.05%) may rise by 59 cents per litre, while diesel (0.005%) could increase by as much as 66 cents per litre when the next bout of fuel prices is announced during the first week of October. The price of illuminating paraffin may rise by one cent per litre due to an over recovery. The data is a snapshot of market conditions as of September 14 and is subject to change according to global economic conditions.
The AA said that according to the data, motorists could expect the petrol price to decrease by between R1.14 and R1.24 a litre, while diesel was expected to increase by between 43c and 50c a litre in October.
“At this mid-month stage, the outlook for petrol is positive. But the expected price increases for 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. Of course, this is only mid-month data so the picture could change before the official adjustments for October are made,” the AA said.
According to the CEF’s data, average lower international oil prices are playing a significant role in the expected decreases in petrol, but less so in the case of diesel.
“Unfortunately, these lower oil prices are being 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 but is trading in a band of around R17.45 to R17.50 to the US currency. This is taking some shine off the impact of lower oil prices,” the AA said.
According to the Department of Energy, the CEF’s daily price snapshots do not predict monthly price changes as its decision on slate levy adjustments and retail margin changes could also impact price fluctuations.
