New data indicates that South African motorists are set to enjoy a major relief at the petrol pumps next week.
This is thanks to the data predicting that the price of both grades of petrol is expected to come down by over 50 cents per litre.
Diesel is also expected to see cuts, with current estimates indicating a drop of around 20 cents per litre.
You can see the expected fuel price predictions based on the latest data, below.
- Petrol 93 – decrease of 56 cents per litre
- Petrol 95 – decrease of 51 cents per litre
- Diesel 0.05% – decrease of 22 cents per litre
- Diesel 0.005% – decrease of 20 cents per litre
This data comes from the Central Energy Fund, which tracks fluctuations in the international oil price and the rand-dollar exchange rate to forecast fuel prices in South Africa.
Global events are therefore a key reason for the drop in fuel prices.
Reasons for the price cut
The forecast drop in price is chiefly thanks to a decline in internal oil prices and a slightly stronger rand against the dollar.
That said, it would be more accurate to say that the rand has remained unusually stable despite global events and trade relation uncertainties, while the dollar has seen a decline.
The global oil price has also seen steady declines over the past month, which has contributed to the local price cut forecast.
This decline in oil prices is driven by the increased supply from the Organisation for Petroleum Exporting Countries (OPEC) following the group lifting production caps it had imposed on members.
The greater supply was coupled with concerns over a slowdown in demand due to global growth coming under strain.
Thanks to these factors, the Brent crude oil price is on track for its third consecutive monthly decline.
It should also be noted that OPEC plans to increase production further in December, which will contribute to the global fuel supply.
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