South African motorists, get ready to breathe a sigh of relief! November is shaping up to bring another significant decrease in petrol and diesel prices, according to the latest predictions from the Central Energy Fund (CEF). After a tough few months at the pumps, this news is certainly welcome.
Bigger Drops Than Expected!
Remember those initial projections of a 40c/l decrease for petrol and 10c/l for diesel? Well, the CEF's updated figures (as of October 10th) are even better! We're now looking at a potential drop of around 60c/l for petrol and 25c/l for diesel. That's a substantial difference that will definitely ease the burden on South African wallets.
When Can We Expect the Change?
While these figures are promising, it's important to remember that they are not final. The CEF, working with the DMRE (Department of Mineral Resources and Energy), continuously monitors economic factors like the Rand/US Dollar exchange rate and international oil prices that influence local fuel costs. The DMRE typically announces fuel price adjustments on the first Wednesday of each month, which in this case will be Wednesday, November 5th (adjustments usually based on data from the last Friday of the preceding month – October 31st).
What's Driving the Price Drop?
The good news is largely attributed to the declining price of oil internationally throughout October. After a volatile September, oil prices have settled at around $65/barrel last week. This decrease has resulted in an 'over-recovery' for petrol and diesel products in South Africa, allowing for the predicted price reductions.
Keep an eye out for the official announcement from the DMRE at the end of the month. Hopefully, these projections hold true, and South Africans can look forward to some much-needed relief at the fuel pumps in November!