Fuel price October LATEST: Days away from GOOD petrol news!

The latest data from the Central Energy Fund shows that SA motorists will see another significant petrol price cut in early October 2022.

Sep 30, 2022 - 12:15
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Fuel price October LATEST: Days away from GOOD petrol news!

The latest data from the Central Energy Fund shows that South African motorists will see another significant petrol price cut in early October 2022.

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However, there’s bad news for diesel car owners.

Month-end data from the Central Energy Fund on Thursday, 29 September 2022 shows that the petrol price could drop by around R1.00 per litre next week.

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However, diesel is showing an under-recovery, indicating a potential increase of around 10 cents per litre.

The CEF’s data shows a petrol price drop of between 90 cents and 102 cents per litre, while diesel could climb between 10 cents and 15 cents per litre.

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Fuel price fluctuations in Mzansi impacted by two main factors:

1. The international price of petroleum products, driven mainly by oil prices

2. The rand/dollar exchange rate used in the purchase of these products

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Exchange rate

The rand has trended significantly weaker in recent weeks, largely at the mercy of global markets.

At the time of publishing the rand/dollar exchange rate is R17.91/$.

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Oil prices

Oil prices have helped ease the pressure on international petroleum product prices.

While the lower oil price is great news for motorists, the drop hasn’t had the same impact on diesel.

While petrol prices have benefitted, global demand for diesel has tightened as the northern hemisphere starts to shift away from gas heating, increasing demand for middle distillates like diesel.

As demand for diesel increases, so too does the price.

This is a major red flag as diesel is used mainly by farmers, haulage vehicles and emergency power generators, and any diesel price hike directly impacts transportation and the costs of manufacturing goods.

At the time of publishing the brent crude oil price is $89.69 a barrel.

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The final overall price changes for both petrol and diesel will be confirmed in the coming days with the new price coming into effect at midnight on Tuesday, 4 October.

Go easy on the accelerator until then, Mzansi!