Motorists could cruise into November with lower fuel costs
According to early CEF figures, petrol and diesel prices are expected to fall in November, with petrol 93 projected to drop by 42 cents per litre, petrol 95 by 38 cents per litre, and diesel by up to six cents per litre
Image: Tumi Pakkies / Independent Media
Motorists may soon be able to breathe a little easier at the pump, with early indicators suggesting that SA’s fuel prices could shift down a gear in November.
The Central Energy Fund (CEF)'s preliminary figures suggest motorists might finally be able to hit the brakes on rising pump prices.
It recorded early over-recoveries — a promising signal that fuel prices might finally dip after months of pressure.
Petrol is showing a notable over-recovery while diesel is managing a smaller gain.
Over-recovery happens when the cost of importing fuel, based on global oil prices and the rand’s exchange rate, falls below the current local pump price.
That opens the door for possible cuts in the next price review.
The CEF’s early figures suggest petrol 93 could decrease by 42 cents per litre, petrol 95 by 38 cents per litre, while wholesale diesel with 0.05% sulphur content may drop by six cents per litre, and 0.005% sulphur diesel by four cents per litre.
Illuminating paraffin, in contrast, is expected to rise slightly by three cents per litre.
The figures are preliminary and could change depending on fluctuations in the rand and international oil prices before the official November price adjustments are confirmed.
The early optimism comes after a notable spike in fuel prices earlier this week.
On Wednesday, petrol 93 and 95 increased by one cent and eight cents per litre respectively, while diesel saw a decrease of 10 cents (0.05% sulphur) and eight cents (0.005% sulphur).
Wholesale illuminating paraffin fell by 11 cents, and the single maximum national retail price for LPG decreased by 17 cents per kilogram.
The price adjustments were driven by rising international product prices for petrol, diesel, and paraffin, coupled with a slight depreciation of the rand against the US dollar.
Over the period from August 29 to September 25, the rand averaged 17.4855 to the dollar, contributing roughly 14 to 15 cents per litre to the basic fuel prices.
In addition, the mineral and petroleum resources ministry approved a retail margin increase of 6.1 cents per litre for petrol to cover wage increases for forecourt staff and administrative employees at service stations.
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