Petrol and diesel prices are coming down in November, following months of steep increases that have hit the local economy hard.
The month-end data released by the Central Energy Fund (CEF) implies that the petrol price is likely to go down by between R1.96 (93 Unleaded) and R2.01 (95 Unleaded), while diesel is looking set for decreases of between R1.04 (50ppm) and R1.07 (500ppm).
This should bring the cost of 93 Unleaded down to around R23.26 while 95 Unleaded petrol will fall to R23.67 in Gauteng and R22.95 at the coast.
The wholesale price of 50ppm diesel will likely land at around R23.50 at the coast and R24.22 inland, but to that you’ll have to add the retail margin which is usually around R2.
Keep in mind that these predictions are based on unaudited data and the official petrol and diesel prices for November are due to be announced by the Department of Mineral Resources and Energy on Monday, October 30. Factors such as the Slate Levy could also influence next month’s price structure.
The fuel price adjustments will kick in on Wednesday, November 01.
Lower international oil prices are the reason for November’s price decreases and were it not for a slightly weaker South African rand, the projected decreases would have been as high as R2.07 for petrol and R1.15 for diesel.
Also read: Here’s how SA’s fuel price is calculated
Unfortunately these price cuts, while welcome, will not be the silver bullet that solves steep inflation in South Africa.
Consider that in the past three months, petrol has gone up by R3.16 and diesel by R5.40. The latter is worrying from a general inflation perspective, but even a small decrease could help the situation.
“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,” the Automobile Association said.
But just what will transpire for December is anyone’s guess, given the volatile situation in the Middle East.