Heavy declines in international petroleum prices have outweighed a recent spike in the exchange rate. This was the word from the Automobile Association which was commenting on unaudited fuel price data released at mid-month by the Central Energy Fund.
“The average exchange rate has spiked to around R11.20 to the US dollar and remains stubbornly high, but the good news is that the landed fuel price has dropped by around ten percent since the last fuel price adjustment,” the AA said. “As things stand, motorists will be paying less at the pumps in November and the picture will improve if the exchange rate comes off its current highs.”
Based on the mid-month data, the petrol price is heading for a month-end decrease of ten to 15 cents per litre, while the picture for diesel is rosier: an estimated 32 cents per litre decline. Data for illuminating paraffin is also showing a substantial drop of around 27 cents per litre.
“The consensus from oil-producing nations seems to be that the world will enjoy lower petroleum prices in the near term, but the benefits felt by South Africans will very much depend on our exchange rate,” the AA concluded.