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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 for 93 unleaded and 33 cents for 95 unleaded, while diesel will drop about 93 cents and paraffin lighting by 78 cents.
“The daily average rand fell to rand 16.10 per US dollar on September 18, after a long downward trend that began in the first week of August. However, an abrupt jump to around R16.90 followed by a brief plateau and a new peak at almost R17.20 caught viewers off guard, and there is some concern about the trajectory of the rand in the short and medium term, “says the AA.
The association notes that the rand’s weakening profile was reflected in the strengthening of international prices for petroleum products.
“At about the same pace as the rand, diesel and gasoline prices soared and then fell back before starting a new rise. If this trend of weakening the rand and rising international fuel prices continues, it could be extremely negative for South African fuel users, and we will watch subsequent changes with interest, ”says AA.
He notes that trends since early August have been stronger for the rand and cheaper for oil.
“It is too early to tell 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.
