This is a sight for sore eyes – at the halfway point of the month, we’ve got some good news to share with the motorists of Mzansi: A petrol price decrease is all but guaranteed for October, as the latest forecasts show some positive trends in the fuel market.
HOW MUCH WILL THE PETROL PRICE Decrease BY NEXT MONTH?
According to data published by the Central Energy Fund (CEF), the petrol price for October will drop by 36 cents-per-litre. There’s even more joy in store for diesel consumers, who could see 85-cents-per-litre slashed from this month’s costs. To complete the hat-trick, illuminating paraffin is also on course for a substantial decrease of 82 cents.
WHY FUEL IS GETTING CHEAPER IN October
Quite simply, there are two factors which determine South Africa’s petrol price for the month ahead: The global performance of the rand, and the price of crude oil. Both factors have reached ‘favourable territory’ on Tuesday.
The Rand is now trading between R16.50 to R17 against the US dollar. This period of stability has been supported by a drop in the current oil prices, meaning that SA is nailed-on for significant relief at the pumps in two weeks’ time.
South Africa, which is heavily reliant on imports for fuel, is often at the mercy of the global market. As we’ve seen earlier this year, wild fluctuations in crude prices saw the value of petrol both plummet and soar.
THE FORECAST PETROL PRICE FOR October 2020
Taking these forecasts and first estimates into account, here’s what you can expect to pay for fuel (price-per-litre) from the first week of October onwards. However, we have to stress that these mid-month estimates are liable to change by the time the Department of Energy set next month’s costs in stone.
- Petrol: R14.12
- Diesel: R11.82
- Petrol: R14.82
- Diesel: R12.42
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