Petrol and diesel prices are expected to drop significantly in October 2020.
The Central Energy Fund reports an over-recovery on fuel prices.
“The Rand has put on a remarkable rally against the US dollar in recent weeks, with the daily exchange rate strengthening from R17.30 on August 21 to R16.70 on August 31 and since the start of September, the Rand has traded in a commendably tight range by recent standards.” – The Automobile Association (AA)
Fuel prices are expected to drop as follows:
- Petrol – 26 to 36 cents per litre decrease
- Diesel – 88 cents per litre decrease
- Illuminating paraffin- 83 cents per litre decrease
These adjustments are based on the continued decline in the price of international petroleum, as well as the stabilisation of the rand/dollar exchange rate at a lower level.
Despite this good news, the AA was quick to note that oil prices are likely to continue fluctuating as the world’s oil demand and supply rebalance due to the effects of the COVID-19 lockdown.