S.African motorists should expect a drop in petrol price - CNBC Africa

S.African motorists should expect a drop in petrol price

Southern Africa

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South African motorists should expect to see a drop in the fuel price by November. PHOTO: Wikipedia

This is according to the Automobile Association (AA) of South Africa who said that the decline in international petroleum prices have outweighed a recent spike in the exchange rate.

“The average exchange rate has spiked to around 11.20 rand to the US dollar and remains stubbornly high, but the good news is that the landed fuel price has dropped by around ten per cent since the last fuel price adjustment,” said the AA.

“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.”

(READ MORE: S.Africa's 95-grade petrol price to dip by 0.4% on Oct 1)

Based on mid-month data, the petrol price is expected to decrease by ten to 15 cents per litre by the end of October, with the price if diesel set to drop even lower by 32 cents per litre.

Illuminating paraffin is also showing a substantial decline of around 27 cents per litre.

(READ MORE: S.Africa's petrol price cuts may be reversed )

“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,” concluded the AA.

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