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The AA says motorists can expect reductions in fuel prices at the end of the month, with gasoline expected to drop between 26 cents and 36 cents a liter, and diesel to drop a whopping 88 cents.
This follows an increase of 1 cent per liter for all gasoline grades and a decrease of 21 cents for diesel in early September.
Paraffin lighting could show a healthy 83-cent drop, the AA said commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“The rand has seen a notable rally against the US dollar in recent weeks, with the daily exchange rate strengthening from rand 17.30 on August 21 to rand 16.70 on August 31. Since early September, the rand it has traded in a commendably narrow range by recent standards, “the AA said.
As the Rand rallied, international oil prices were retreating, with the landing price of refined fuels in South Africa falling more than 10% since September 1.
“All of this adds to a promising image for fuel users,” the association said.
However, the AA warned that oil prices are likely to continue to rise as global oil supply and demand gradually rebalance following the turmoil of the initial lockdown period from March to June.
The AA said it is customary at this time of year for the impending winter in the northern hemisphere to start to boost demand for heating fuels, putting pressure on fuel oil refining capacity, including diesel.
“However, the seismic impact that Covid-19 has caused to the global economy, coupled with high levels of inventories, could mean that increased winter demand for heating fuels may not be enough to translate into substantial price increases. of diesel. A period of higher oil prices and the stability of Rand would provide much-needed respite to South African fuel users, “the association said.
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