Fuel prices to take a dip in November, thanks to a stronger rand

Fuel prices to take a dip in November, thanks to a stronger rand

- According to the Automobile Association (AA) the price of fuel is going to drop in November because of the rand being a lot stronger

- The price of petrol will decrease by 27 cents and diesel will go down by 11 cents

- The exchange rate and the price of oil have been steady over the last few months which means that fuel prices have reached equilibrium

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The Automobile Association (AA) has announced that fuel prices are going to drop in November because the rand is stronger. The price drop is also due to international fuel prices being a bit cheaper than usual. This will come as good news to many South Africans as the economy has been negatively affected by the COVID-19 pandemic.

The price of petrol will go down by 27 cents a litre and diesel will decrease by 11 cents. The price effects will only take place in November.

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It has been noted that the rand has maintained a steady strength against the US Dollar through the course of October which is why the price of fuel has decreased.

Fuel prices to take a dip in November, thanks to stronger rand
Fuel prices to take a dip in November, thanks to the rand becoming stronger. (Photo Illustration by Sean Gallup/Getty Images)
Source: Getty Images
The AA said: "This gradual appreciation has been mirrored by international oil prices, which softened throughout the month, with steeper reductions seen over the past 10 days."

They also added that the exchange rate and oil pricing have become more stable over the last few months, meaning that fuel prices have reached steadiness.

“We are hoping that this is the case, because fuel price stability would be welcome relief to individuals and corporates alike in the current economic conditions,” they said.

It had been noted that there was a trend in oil being cheaper and the rand being stronger since August this year.

"It is too early to tell whether the spikes in both were a blip or the start of a more sustained reversal, but motorists should continue to be wary given the ongoing instability in both local and global economies," the AA said.

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In other news, Briefly.co.za previously reported that Total discovers significant gas deposit off of SA's south coast. Total South Africa has announced a second gas discovery just a year after the first was made off of the shore of Mossel Bay. The Luiperd well was found in the Outeniqua Basin, just under 200 kilometres off of the nation's southern coast, making this area SA's new gas frontier.

The company explained that the site, covering 19 000 square kilometres, will now be tested to assess its characteristics and deliverability. Total holds a seizable 45% cut of the pie in this region, while a further 25% is held by Qatar Petroleum. The remaining shares are held by CNR International and Main Street.

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Source: Briefly.co.za

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