Motorists with diesel vehicles can look forward to some welcome relief at the pump next month.
The latest data from the Central Energy Fund yesterday pointed to possible diesel price cuts of between R2.08 (500ppm) and R2.14 (50ppm).
The diesel prediction is an easier one to make this month, as the latest daily data is in harmony with the monthly average, as price fluctuations have been minimal this month, reports IOL.
That’s not the case for petrol, however.
Although the month-average is currently pointing to a decrease of around R1.05 for 93 unleaded petrol, if current trends persist that number is likely to fall well below the R1 mark, as the latest daily numbers show a diminished over-recovery of around 42 cents.
At this stage, a petrol price decrease in the region of 60 cents seems more likely.
International oil prices have softened in the past few months, with Brent Crude having weakened to about $82 from a September high close to $98, Reuters reported.
This is reportedly as a result of concerns over slow economic growth and the resulting demand for fuel, with these sentiments having outweighed supply cuts by the Organisation of Petrolem Exporting Countries (OPEC}.
However geopolitical events remain a risk going forward and could result in more oil price volatility, the International Energy Agency warned.
South African Rand volatility remains a risk too, although the local currency has played in our favour so far this month, and is currently contributing around 30 cents to the petrol price over-recovery and 35 cents in the case of diesel.
IOL Motoring