Motorists are in for welcome relief at the pumps next month, with the latest fuel recovery data indicating substantial price cuts across petrol and diesel.
Data from the Central Energy Fund (CEF) for the second week of October reveals that fuel price recoveries have shifted dramatically in favour of motorists, building on positive momentum from early in the month.
The projected November price changes are:
• Petrol 93: 42 cents per litre decrease
• Petrol 95: 38 cents per litre decrease
• Diesel 0.05% (wholesale): 6 cents per litre decrease
• Diesel 0.005% (wholesale): 4 cents per litre decrease
• Illuminating paraffin: 3 cents per litre increase
The over-recovery for petrol prices has now reached between 55 and 57 cents per litre, while diesel over-recovery has grown substantially to 21 cents per litre. Even illuminating paraffin, which began the month facing a potential price hike, has shifted to an over-recovery position.
The primary factor behind these price cuts is the sustained decline in global oil prices, which have settled below $65 per barrel. This represents a significant shift from September’s volatility, when prices fluctuated between $66 and $69 per barrel.
The South African rand’s recent strength provides additional fuel price relief, with the currency hitting a 12-month high of R17.12 against the dollar this week. Despite weakening to around R17.20 on Friday, the rand maintains a significantly stronger position than last month.
The local currency has appreciated 8.7% since the year’s opening rate of R18.82, despite global uncertainties including trade tensions, geopolitical conflicts, and domestic economic challenges.
The stronger rand contributes approximately 14 cents per litre to the over-recovery for both petrol and diesel, providing additional savings for consumers at the pumps.
