Unaudited mid-month data shows a decrease of between R1.14 and R1.24 a litre for petrol but a rise of between 43c and 50c a litre for diesel in October.
THE AUTOMOBILE Association (AA) has said that according to data from the Central Energy Fund, another petrol price decrease may be on the cards for next month – however the price of diesel may go up.
Layton Beard, spokesperson for the AA, said petrol users could see another sizeable reduction in the fuel price in October, while diesel users were facing an increase.
“According to unaudited mid-month data of the Central Energy Fund, 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.”
Beard added that while the outlook for petrol was positive, the expected price increases to diesel were concerning as it was mainly used in the freight, mining, manufacturing and agricultural sectors. Therefore this could 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.”
Professor Bonke Dumisa, an independent economic analyst, also said it was concerning that the diesel price might be going up.
“I’m quite confident that the price of petrol will drop in October. This is due to a drop in the price of Brent Crude Oil. A few months ago the price of Brent Crude Oil was at over $100, but it is now less than $100 a barrel.”
Dumisa added that an increase in the price of diesel would likely lead to an increase in the cost of doing business, as road freight uses this fuel. He said these added costs would be passed on to the consumer.
Professor Irrshad Kaseeram, from the University of Zululand’s economics department, also noted that the petrol price decrease was good news but that a diesel price hike was likely to have a negative impact.
“We are so reliant on the movement of goods through roads and an increase in the price of diesel could cause an increase in the price of goods.”
