South African motorists have a reason to smile as fuel prices are set for a drop in November.
“We are anticipating November drops of between 8 and 18 cents for petrol, 14 cents for diesel, and 21 cents for illuminating paraffin”, AA said.
October was the eighth consecutive month fuel prices hiked since the beginning of the year.
“The Rand has pulled back from its high point at the start of October. This ongoing decline in the average exchange rate has meant that most of its losses have been clawed back, and it will have only a modest impact on the fuel price,” the AA said while commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
Given that international oil prices also declined slightly as October elapsed, AA stated that it is anticipating that the same trend will extend to November.
“Whatever happens to the oil price and Rand from this point affects the price motorists will be paying at the pumps at Christmas. It remains to be seen whether this month’s reductions will continue for the rest of the year,” it said.
New fuel prices are announced every month normally influenced by many factors including slight changes in the global crude oil market.
Prices of fuel are incredibly unstable, altering quickly in response to news periods, policy adjustments and fluctuations in the world’s markets.
On Sept this year, the world received news that Saudi Arabia’s oil infrastructure suffered one of the biggest blow after its critical processing facilities were attacked. The Saudi oil attacks led to the biggest spurt in global prices since 1988 as it was the largest disruptions to the oil market ever.
Two sites were damaged by the attack decreasing Saudi Arabia’s oil production by 5.7 million barrels a day, from approximately 9.8 million.
Featured Image Courtesy: nzherald.co.nz