Stronger oil keeps up fuel price pressure

Outlook at this early stage indicates small or no change to fuel price for November

Stronger international oil prices have kept up the pressure on South Africa's local fuel prices. This is according to the Automobile Association which was commenting on unaudited fuel price data released at mid-month by the Central Energy Fund (CEF).

"In a reverse of last month's trend, the Rand / US dollar exchange rate has strengthened slightly, contributing about a four cents per litre drop in fuel prices across the board," the AA said.

"However, international oil prices jumped in the first weeks of October, offsetting the gains made by the Rand. As a result, the current data shows petrol up by three to five cents a litre, with diesel climbing by 19 cents."

The AA commented that international oil prices had begun to retreat in recent days, and that it was cautiously optimistic about the picture at month end.

"If the exchange rate continues with its slight downward trend and oil follows, fuel prices for November could be virtually unchanged or slightly cheaper," the Association commented. "We will be following the oil and exchange rate trends with interest," the AA concluded.

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