There’s every indication that motorists will get some much-needed fuel price relief in November, with the latest data pointing to significant petrol and diesel price decreases.
Although the official November fuel prices are only set to be announced early next week, before coming into effect on Wednesday, November 1, the latest daily snapshot from the Central Energy Fund (CEF) contains positive news.
On Tuesday, 24 October, the average petrol over-recovery stood at R1.98 for 95 Unleaded and R1,93 for 93 ULP, but given the slight upward pressure on oil prices this week, the actual price decreases for next week are likely to fall between R1.90 and R1.95.
Assuming the petrol price cut lands around the R1.95 mark, 95 Unleaded petrol will decrease to about R23 at the coast and R23.73 inland, with 93 ULP projected to cost in the region of R23.27.
On the diesel front we’re currently looking at price cuts of between 90 cents and 94 cents, which could shift closer to R1 if current international price trends (which favour diesel) persist until the weekend.
Notwithstanding, aspects such as the Slate Levy, which compensates oil companies for daily oil price fluctuations in the preceding month, could also have an influence on November’s fuel pricing structure.
Next month’s predicted decreases for petrol and diesel come as a result of softer international oil prices during October, which transpired in spite of the conflict in the Middle East.
After trading between $90 and $94.30 for most of September, Brent Crude oil prices dropped to $84 in early October on recession fears and another partial lifting of Russia’s fuel export ban.
However the Israel-Hamas war sent prices back to the $90 region, see-sawing on fears of a wider conflict developing, but despite this the sums are still pointing towards substantial fuel price cuts in November.
Although this will provide much needed relief to motorists, November’s projected decreases follow months of steep price hikes that have seen the price of 93 Unleaded petrol rise by R3.16 in just three months, and diesel by R5.40.
The latter is worrying as it’s yet to be seen whether November’s predicted diesel price cut of just under R1 will be sufficient to ease general inflation arising from transport costs.
“These significant decreases will come at a very critical time for South Africans who have had to dig deeper into their pockets to fill up their vehicles and food trolleys with the previous cycles of fuel increases,” the Automobile Association said.
The official petrol and diesel price adjustments for November will be announced by the Department of Mineral Resources and Energy early next week.