Energy

Petrol price pain for SA motorists in October

Staff Writer

 ·29 Sep 2016

Motorists will have to fork out more at the pumps in October thanks to stronger international petroleum prices, according to the Automobile Association (AA).

Commenting on unaudited month-end data released by the Central Energy Fund (CEF), the AA noted that while the rand declined against the US dollar early in September, it has since strengthened.

“Only around eight cents of this month’s increase will come from rand weakness. It is oil strength which has been the major contributor.”

Petrol is expected to increase by between 43 to 45 cents a litre, diesel by 23 cents, and illuminating paraffin by 22 cents.

Read: Diesel vs petrol car – how to choose which is best

“Time will tell how stable the rand / US dollar exchange rate is likely to be, but we note with interest the agreement reached by OPEC’s members to limit oil production, the first such cut since 2008,” the AA said.

The Association said the decision by OPEC (the Organisation of Petroleum Exporting Countries) to trim output by up to 700,000 barrels per day could, if accepted at the group’s November meeting, have the effect of stimulating international petroleum prices, but may also lead to increased production by non-OPEC members.

“If the rand remains volatile, South Africans will be more exposed to changes in the oil price, and we advise motorists to continue to economise in the absence of a clear picture of what effect the OPEC decision may have,” the AA said.

Here are the expected prices for October 2016:

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