Big decreases in petrol, diesel prices expected for November

27th October 2023 By: News24Wire

 Big decreases in petrol, diesel prices expected for November

Photo by: Bloomberg

A significant decline in petrol and diesel prices is expected for November, according to unaudited data from the Central Energy Fund.

The data suggests that the price of unleaded petrol 95 will decrease by R1.97 a litre, and R1.92 for unleaded 93 diesel is expected to decrease by around 78c cents a litre on Wednesday, 1 November. Paraffin is expected to drop by 74 cents a litre.

"These significant decreases will come at a very critical time for South Africans who have had to dig deeper into their pockets to fill up their vehicles and food trolleys with the previous cycles of fuel increases," the Automobile Association said in a statement.

"The outlook for November will offer some much-needed relief to consumers, especially with the decrease of diesel which is a big input cost in major sectors such as agriculture, mining, and manufacturing, and an increase here often contributes to increased prices of basic commodities.

"There are still two weeks before the official adjustment for November which could still be negatively affected by the upward trajectory of oil prices due to the ongoing conflict in Israel."

South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.

Petrol (95 unleaded) now retails for R25.68 a litre in Gauteng, from R21.40 at the start of 2023. The wholesale price of diesel in Gauteng is now R25.01 a litre, from R19.31 as recently as June this year.