Fuel Price Drop for September 2020

In HotWheels
August 29, 2020
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There’s good news for SA motorists as the Automobile Association says that the majority of fuels will be coming down in price. Here’s what you need to know.

First, the good news. The retreat in oil prices has resulted in 95 octane petrol will be dropping by approximately 4 cents a litre, diesel will come down by 19 cents a litre and paraffin down by 24 cents. The bad news is there’ll be a small increase in the price of 93 octane, which should go up by around 6 cents a litre.

“The bad news for the month was the Rand, which pulled back from testing the R16.80 mark against the US dollar last month and headed towards R17.40 at mid-month, with a slight firming trend since. On average, exchange rate losses added around 17 cents a litre to next month’s petrol price. The good news is that a steady performance from international oil prices has offset the Rand’s weakness,” notes the AA.

However, it’s not happiness and motorists can be expected to pay more towards the end of September as the price of international product had increased in the last week of August. The AA also warns about the medium-term COVID-19 economic damage. “As the country comes to terms with the economic damage caused by the COVID-19 lockdown, there is also concern about government’s ongoing policy uncertainty and levels of corruption as highlighted by the President,” the Association says. “It notes that these failings affect investor confidence and, by extension, the Rand’s strength, meaning the fuel price is higher than it should be, and will take longer than necessary to return to reasonable levels in the short to medium term.”