Fuel Prices Set to Decrease in October, Bringing Relief to Motorists
As the new month begins, motorists in South Africa can expect a welcome respite at the pumps. Starting from Wednesday, October 2, the prices of all grades of petrol and diesel are set to decrease, with illuminating paraffin also expected to follow suit. The only exception is the cost of LP Gas, which will see a slight increase.
According to the Department of Mineral and Petroleum Resources, the price adjustments were announced on Monday and will take effect from October 2. The decreases in fuel prices are attributed to a combination of international and local factors.
The average Brent Crude oil price decreased from $78.54 to $72.82 per barrel during the period under review, with increased production from major oil-producing countries being a key contributing factor. This, in turn, led to lower international petroleum product prices, resulting in decreased contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin.
Additionally, the Rand appreciated against the US Dollar, from 18.05 to 17.68 Rand per USD, during the period under review. This led to lower contributions to the Basic Fuel Prices of all products by over 21.00 cents per litre.
In Gauteng, a litre of 95 petrol, which currently costs R22.19, will now cost R21.05 a litre as of Wednesday. On the coast, a litre of 95 petrol, which costs R21.40 in September, will now cost R20.26 a litre in October.
The decrease in fuel prices is expected to bring relief to motorists, who have been grappling with rising costs in recent months. As the global economy continues to evolve, it remains to be seen how these changes will impact the fuel market in the long term. For now, however, motorists can look forward to a temporary reprieve at the pumps.
