Fuel prices are set to drop drastically in October with petrol set for a drop of around 36 cents a litre, and diesel predicted to come down by as much as 88 cents a litre.
That’s according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The AA says the Rand has put on a remarkable rally against the US dollar in recent weeks, with the daily exchange rate strengthening from R17.30 on the 21st of August to R16.70 ten days later.
“Since the start of September, the Rand has continued to trade in a commendably tight range by recent standards,” says the AA.
The AA noted that at the same time the Rand was advancing, international oil prices were beating a retreat, with the landed price of refined fuels in South Africa slipping by more than 10% since the first of September.
“This all adds up to a promising picture for fuel users, with the data currently showing petrol lower by between 26 and 36 cents a litre and diesel down by a whopping 88 cents a litre. Illuminating paraffin is also showing a healthy 83-cent drop.”
The AA cautions, however, that oil prices will likely continue to see-saw as world oil demand and supply gradually re-balance following the turbulence of the initial lockdown period of March to June.