‘Much needed relief’: AA on the November fuel prices
Fuel prices have been increasing for the last few months. The AA says South Africans can expected a relief at the pumps in November.
The Automobile Association (AA) says South Africans can breathe a sigh of relief as fuel prices are set to decrease in November.
This is based on unaudited mid-month data by the Central Energy Fund (CEF).
FUEL PRICES EXPECTED TO DECREASE IN NOVEMBER
According to the Central Energy Fund, petrol ULP95 is set to decrease by around R1.97/litre and R1.92/l for ULP93, while diesel, which has been on an upward trajectory for the past couple of months, is set for a decrease of around 78c/litre. The unaudited data is also pointing to a decrease to the cost of illuminating paraffin of around 74c/l.
The association said the 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.
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Furthermore, according to the CEF’s data, more stable international oil prices are the main driver behind the potential decreases for November although the average weaker Rand-US Dollar exchange rate is shaving some of the possible decreases off what is otherwise a positive outlook.
“The outlook for November will offer some much-needed relief to consumers, especially with the decrease of diesel which is a big input cost in major sectors such as agriculture, mining, and manufacturing, and an increase here often contributes to increased prices of basic commodities.
“There are still two weeks before the official adjustment for November which could still be negatively affected by the upward trajectory of oil prices due to the ongoing conflict in Israel,” the association said.
Officially adjusted fuel prices come into effect on 1 November, the first Wednesday of November. An announcement on the official adjustment is announced by the Department of Mineral Resources and Energy (DMRE).