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Friday, February 23, 2024

Relief at the fuel pumps expected

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There will be some relief for motorists at the fuel pumps next month. That’s the projection of the Automobile Association of South Africa, following the release of mid-month data. The AA has reminded people that the Central Energy Fund’s mid-month data has not been audited.

Much-needed relief at the pumps


For now, it looks like ULP95 could decrease by around R1.97/litre and R1.92/l for ULP93.
Diesel has been on an upward trajectory for the last couple of months. The price of diesel could decrease of around 78c/litre.
“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,” says the AA.
For illuminating paraffin, the unaudited data shows, a possible decrease in the cost of around 74c/l.

Possible good news for motorists

The CEF’s data points to more stable international oil prices as the main driver behind the potential decreases for November. However, the average weaker Rand-US Dollar exchange rate could shave some of the possible decreases off, on what is otherwise, a positive outlook.
“The outlook for November will offer some much-needed relief to consumers,”  the AA elaborated.

Wednesday 1 November

The organization says a decrease in the price of diesel will bring relief, as diesel is a big input cost in major sectors such as agriculture, mining and manufacturing. An increase in this price could lead to an increase in the price of basic commodities.
The AA has also reminded citizens that there are still 2 weeks before November’s official adjustment. An upward trajectory of oil prices due to the ongoing conflict in Israel could still negatively affect the projected lower prices.

2 weeks to go

The Department of Mineral Resources and Energy officially adjusts fuel prices. These prices come into effect on the first of the month. The following adjusted prices should come into effect on Wednesday, the first of November.
Please note: The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa. It also does not give any input on how fuel prices are calculated.
How prices are adjusted
Fuel prices are officially calculated and adjusted on the first Wednesday of every month. This is done by the Department of Mineral Resources and Energy (DMRE). The DMRE is the only entity which regulates, sets, and adjusts fuel prices in the country.
The AA publishes outlooks and fuel price commentary based on publicly available information and communicates movements to the fuel price in the interests of informing consumers.
Merentia Van Der Vent
Merentia Van Der Vent
Merentia joined the media world in 1996 and in 2001, she took her first steps in the broadcasting world. In her free time, she likes to go on adventures in the city. She also likes to learn new dances, not that she is any good at that.

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