The Automobile Association (AA) said its unaudited data from the Central Energy Fund (CEF) is pointing to decreases in petrol to R2.00 a litre and R1.00 a litre for diesel at the pumps in November. The official fuel adjustments will however be made soon by the Department of Mineral Resources and Energy (DMRE).
“According to the current data, ULP95 is expected to decrease by around R2.01 a litre and ULP93 by R1.96 a litre. Diesel is also expected to have a decent decrease of around R1.08 a litre, with illuminating paraffin also showing an expected decrease of 98 cents a litre. After three months of significant increases both petrol and diesel prices are expected to fall below the R25/l mark again,” said AA spokesperson, Layton Beard.
The decrease is a relief for motorists, consumers, and the economy, especially heading into the end of the year. The AA notes that these decreases come as South Africans continue to struggle financially and will be welcome relief from the substantial increases seen since August.
“In July, a litre of ULP95 cost R22.46 (inland). Should the expected decrease materialise, the November price for a litre of ULP95 inland will cost around R23.68,” added Beard.
Despite the expected decreases, the Association said it is concerned about the overall high prices which impact on all consumers. It said a sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, “citizens will be at the mercy of fuel price hikes.”
The Association says the CEF data is pointing to significant drops in the cost of international product prices on average over October as the biggest contributor to the decreases. It also highlighted that the Rand weakness also contributed to the expected decreases.
