File picture: Karen Sandison/African News Agency (ANA).
File picture: Karen Sandison/African News Agency (ANA).

November fuel price outlook: slightly better than expected

By Jason Woosey Time of article published Oct 30, 2020

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JOHANNESBURG - A stronger rand and lower international oil prices during the second half of October mean that the fuel price reductions for November will be slightly better than originally expected.

According to the Automobile Association, unaudited month-end data shows that petrol prices could fall by up to 27 cents a litre next month, with diesel set to go down by about 11 cents. However, illuminating paraffin will go up by around 15 cents.

95 Unleaded petrol currently retails for R14.16 at the coast and R14.86 inland, where the cheaper 93 Unleaded sells for R14.66.

According to the AA, the rand maintained its strength against the US dollar during October, with the currency strengthening further during the past week. Thankfully, international oil prices have also softened throughout the month, with steeper reductions being seen in the last 10 days.

The association added that fuel prices currently seem to be in a state of equilibrium, with relative stability being seen in pricing and currency data in the last two months.

However, 2020 has been a turbulent year for fuel pricing as our graphic below depicts.

At the beginning of the tumultuous year that was 2020, a litre of 95 Unleaded petrol cost R15.52 at the coast while 93 Unleaded was listed at R15.84 in the inland regions.

However, these prices tumbled in April and May, with 95 ULP sinking to R11.52 at the coast and 93 ULP going as low as R12.02 inland. But prices have since crept up by more than two rand.

However, those filling up with diesel have had a happier year, with prices currently R2.30 lower than they were in January.

Bear in mind however, that we were only able to list wholesale prices for diesel as this fuel type is deregulated and thus retail prices differ from station to station. So be sure to show around.

IOL Motoring

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