Fuel price data is mixed for next month, with petrol prices set to drop by far more than diesel.
This is according to the Automobile Association (AA), which stated that the appreciation of the rand has been countered by a sharp spike in international oil prices.
The AA was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“It is quite unusual to have such a spread of price outlooks as is currently the case,” the AA said.
“Petrol is set to drop by up to 36 cents a litre, but by contrast, diesel will likely only see a four-cent drop. Meanwhile, illuminating paraffin is showing an increase of almost ten cents a litre.”
Fuel price changes
- Petrol – R0.36 per litre decrease
- Diesel – R0.04 per litre decrease
- Illuminating Paraffin – R0.10 per litre increase
The AA said the recent spike in the international prices of refined fuels ends a month-long price decline.
The international price of diesel increased by nearly 20% between November 2 and November 11 before pulling back slightly, while petrol was up more than 15%.
“Fortunately, the Rand has fended off most of these increases, and has appreciated strongly against the US dollar, dipping below R15.50 to the dollar on November 10,” the AA said.
It added that the currency and oil price fluctuations were attributable to world consumption rebounding faster than production, and the “background noise” around the US election of Joe Biden as President.
“Under the circumstances, oil prices and the Rand/USD exchange rate remain as stable as can be expected.”
The AA said that the large drops and rebounds in fuel prices over the past six months seem to have worked themselves out, but it warned that this did not mean future prices are certain.
“With the South African economy in its current fragile state, fuel users will be among the first to feel any economic shocks,” the AA said.