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• Fuel prices will decline in October.
• Diesel prices will drop about 93 cents.
• AA Warns Motorists to Be Tired Given Uncertain Economic Climate
• For more motorsports stories, visit www.Wheels24.co.za
Even a strong rebound in both the Rand / US dollar exchange rate and international oil prices could not detract from the good news, which is that all grades of fuel will be cheaper in October.
This is according to the Automobile Association (AA), which was commenting on the unaudited month-end fuel price data released by the Central Energy Fund.
Based on current data, gasoline will drop 24 cents to 93 unleaded and 33c to 95 unleaded, while diesel will drop around 93c and paraffin lighting by 78c.
Fuel pumps (Getty Images)
‘Be cautious’
The AA says: “The daily average of the Rand fell as low as R16.10 per US dollar on September 18, following a long downward trend that started in the first week of August. However, a sharp jump to around R16.90 followed by a brief plateau and a further rise to nearly R17.20 caught viewers off guard, and there is rightly some concern about the short to medium term trajectory of the Rand. “
The Association notes that the weakening profile of the Rand was reflected in the strengthening of international prices for petroleum products.
READ: Here’s how much fuel you can buy with the average South African salary in 2020
The AA adds: “Almost at the same rate as the Rand, diesel and gasoline prices spiked and then fell back before beginning a further escalation. If this trend of weakening the Rand and rising international fuel prices continues, it could be extremely negative for South Africa to fuel users, and we will look forward to subsequent changes. “
He notes that trends since early August have been stronger for the rand and cheaper for oil.
“It is too early to say whether the spikes in both were a bump or the beginning of a more sustained reversal, but motorists must remain cautious given the ongoing instability in the local and global economies,” AA concludes.
