Petrol price seen lower

The South African Petroleum Retailers Association (Sapra) is a forecasting a drop in the price of fuel of between 20 and 25 cents when the the energy department makes its announcement on Friday.

This is in line with a forecast made by the Automobile Association of South Africa (AA) earlier in October.

The price of 95 unleaded (ULP) and lead replacement (LRP) petrol was reduced by 20 cents a litre, and 93 ULP and LRP by 19 cents a litre in October.

Both grades of diesel decreases by two cents a litre.

Sapra’s Gerrie Lewies said that, barring no major economic incident, “my gut feel is that on Friday they (energy department) will announce a decrease of between 20 cents and 25 cents.”

He said that diesel would also likely decline, but not as much as the petrol price.

He said that the possibility of yet another mining strike before the end of the year might have an affect on the rand exchange rate which, in turn, would affect the petrol price again in December.

However, should any strikes be averted, and “if the rand stays in the range it is, I don’t foresee an increase in December”.

On Tuesday (29 October) however, Bloomberg reported that the Association of Mineworkers and Construction Union said it would go on strike at Impala Platinum Holdings, the world’s biggest platinum mine.

Impala accounts for about 25% of global platinum supplies.

AMCU needed to give Implats 48 hours notice before embarking on a strike.

The AA said that prospects for a fuel price decrease at the end of October looked positive. International petroleum prices softened between the 2nd and 11th October, giving an over-recovery of between ten and 12 cents per litre for diesel, 15 cents for illuminating paraffin and 24 to 25 cents for petrol.

Having traded at R10.33 to the dollar at the end of September, the local currency has settled at around R9.88 against the greenback, having reached a five week best of R9.76 in recent sessions.

More on the fuel price

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Get ready for big fuel price hike: report

Do South Africans overpay for petrol?

Rand bites as petrol set for steep rise

Petrol price drop coming

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Petrol price seen lower