Fuel prices set to drop in November thanks to stronger rand

Fuel prices set to drop in November thanks to stronger rand

Petrol and diesel prices are set to drop in November, thanks to a slightly firmer rand and softer international petroleum prices.

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 data show that petrol will be down by as much as 27c a litre, with diesel down about 11c.

95 Unleaded petrol currently retails for R14.16 at the coast and R14.86 inland, where the cheaper 93 Unleaded sells for R14.66.

“The only fly in the ointment is illuminating paraffin, whose basic fuel price increased while petrol and diesel were falling, meaning a 15c-a-litre rise for the popular lighting and heating fuel is on the cards,” the AA said.

It said the rand has maintained its strength against the US dollar throughout October, with the firming trend accelerating in the past week.

“This gradual appreciation has been mirrored by international oil prices, which softened throughout the month, with steeper reductions seen over the past 10 days,” the AA notes, adding that exchange rate and oil pricing data have shown more stability over the past two months, suggesting that fuel prices have reached an equilibrium.

“We are hoping that this is the case, because fuel price stability would be welcome relief to individuals and corporates alike in the current economic conditions.”