An alternate huge petrol price drop may be onroute in December!
The petrol cost could drop by more than 70 cents per liter and the wholesale cost of diesel could fall by around 50 cents on 3 December, the Solidarity Research Institute (SRI) said on Tuesday (18 November).
With the expected decrease, the price of petrol will be lower than it was a year ago. It will be the first time in five years that petrol is cheaper on an annual basis, the trade union said.
It follows a 45 cents per litre cut on 5 November.
Paul Joubert, senior finance analyst at the SRI, said that the weaker rand is counteracting a reduction in local fuel prices at present.
He said the rand exchanged at a normal of more or less R11.12 against the US dollar in October. In this way, it has exchanged possibly weaker at a normal of R11.14 amid November.
“Luckily, worldwide petroleum item costs, the other variable that decides neighborhood fuel costs, have so far kept on declining alongside oil costs amid the course of November,” Joubert said.
The cost of OPEC oil, which was $86.29 a barrel in October, has arrived at the midpoint of about 10% lower at $77.67 a barrel in November as such, he included.
The normal decrease would take the cost of 93 octane petrol in Gauteng to roughly R12.28 a liter, which is beneath the cost of R12.97 a liter that connected in December 2013.
“In November 2009, petrol was R1.30 cheaper than in November 2008, but in the subsequent five years the price of petrol has consistently been higher than it was a year before,” said Joubert.
Joubert said the relevant period for calculating December’s local fuel prices only ends on Thursday, 27 November.
He indicated that, should the rand or oil prices experience large fluctuations between now and then, the fuel price adjustments in December could deviate significantly from this projection.
The Department of Energy will announce the final fuel price changes on 28 November.