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Petrol users could see another sizable reduction in their fuel price in October while diesel users are facing an increase, says the Automobile Association (AA). According to unaudited mid-month data of the Central Energy Fund (CEF), petrol is expected to decrease by between R1.14 and R1.24 a litre while diesel is expected to increase by between 43c and 50c a litre in October.

“At this mid-month stage, the outlook for petrol is positive. But the expected price increases to diesel are concerning as this is the fuel mainly used in the mining, manufacturing and agricultural sectors, and an increase here will lead to increased product prices down the line. Of course, this is only mid-month data so the picture could change before the official adjustments for October are made,” says the AA.

According to the CEF’s data, average lower international oil prices are playing a significant role in the expected decreases to petrol but less so in the case of diesel.

“Unfortunately, these lower oil prices are being offset by a weaker Rand since the start of September. At the end of August, the Rand was trading at R16.95 to the US dollar but is trading in a band of around R17.45 to R17.50 to the US currency. This is taking some shine off the impact of lower oil prices,” notes the AA.

NOTE TO EDITORS:

The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated. Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy. The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.

The AA publishes outlooks and fuel price commentary based on publicly available information and communicates movements to the fuel price in the interest of informing consumers.

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