Petrol price drop expected despite drone attack

The Automobile Association (AA) has said that despite drone strikes against Saudi Arabia’s Abqaiq oil refinery, the petrol price for South Africa is still expected to decrease.

The attack has made it difficult to accurately predict the fuel price before the end of the month, however.

“The refinery strike was a game-changer for the way oil price stability is viewed. At a single stroke, five to seven percent of the world’s oil output has been wiped from the board, leading oil prices to surge disproportionately,” the AA said.

The expected price decrease for South Africa has been dampened by the attack, with 95 octane now showing a 5c per litre decrease and 93 octane showing a 20c price drop.

A price increase of 13c per litre is expected for diesel, and illuminating paraffin could increase by 8c, the AA said.

Below is a summary of the price changes expected for September 2019:

  • 95 Petrol decrease of 5c per litre
  • 93 Petrol decrease of 20c per litre
  • Diesel increase of 13c per litre

“The US President has authorised the release of oil from that country’s Strategic Petroleum Reserve,” the AA added.

“This should calm some oil price nerves, but the potential for copycat attacks on other oil installations now that their vulnerability is clear remains a concern.”

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Petrol price drop expected despite drone attack