[ad_1]
By Jason Woosey 
14h ago
JOHANNESBURG – After a stagnant September preceded by months of fuel price increases, there finally seems to be good news for South African motorists, with mid-month data from the Central Energy Fund pointing to declines for both gasoline and fuel. diesel in October.
Currently, the Automobile Association foresees a price cut of between 26 and 36 cents a liter for gasoline and 88 cents for diesel. While that prediction is based on the current average for the month so far, if one looks at the most recent daily price data, it is certainly plausible that the price cuts could be closer to 50 cents per liter in the case of gasoline. and more than a rand for diesel, although that assumes that the current oil price and rand trends continue until the end of this month.
Unleaded 95-octane gasoline currently sells for R14.48 on the coast and R15.16 inland, while the slightly cheaper 93 ULP sells for R14.89.
Gasoline is still cheaper than it was at the beginning of the year when the unleaded 95 hit R15.52 on the coast, but it is still almost R3 more expensive than in May this year after oil prices fell due to to the Covid-19 pandemic.
The AA explains that both the local currency and international oil prices are favoring South African motorists.
“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 and since early September, the rand it has traded in a commendably narrow range by recent standards, “the AA said.
“At the same time that the Rand was advancing, international oil prices were retreating, with the landing price of refined fuels in South Africa falling by more than ten percent since 1 September,” the association added.
However, he warned that oil prices are likely to continue to rise as global oil supply and demand gradually rebalance after the Covid-related turbulence that took place earlier this year.
Brent crude oil was trading at R40.14 at the time of writing, while the rand was trading at R16.44 per US dollar.
IOL Engine
[ad_2]
