Unleaded 95 octane petrol is on track for an increase of 19c a litre, while diesel prices will increase by about 24c. All hope of a fuel price cut in October is likely lost, according to the latest data from the Central Energy Fund (CEF).
A strong rand rally at the start of September initially put the petrol price on track for a cut in the first week of October.
But then an attack on a major oil facility in Saudi Arabia triggered a record one-day oil price surge.
“The refinery strike was a game-changer for the way oil price stability is viewed. At a single stroke, five to seven per cent of the world’s oil output was wiped from the board, leading oil prices to surge disproportionately,” the Automobile Association said in a statement last week.
After an initial spike of 20% to above $70 a barrel, the oil price has since retreated, with Brent crude oil currently trading at $63 – compared to $60 before the attack. Saudi output was restored this week to pre-attack levels.
But, meanwhile, the rand has taken a hit amid concerns about a global trade war. On Wednesday, it broke through the R15/$ level for the first time in three weeks. It was the last trading at R15.03.
Based on the latest CEF calculations, the recent rand and oil price movements will leave unleaded 95 octane petrol on track for an increase of 19c a litre, while 93 octane petrol could be cut by around 4c. Diesel prices will increase by 24c, and paraffin by the same margin.
Petrol prices have increased by almost 15% this year, from R14.01 for 95 unleaded in January, to R16.03 in September.
In other news – Ntsiki Mazwai throws shade at those who mocked her & declares Winnie Mandela day
As Mzansi celebrates the life of late apartheid stalwart Winnie Madikizela-Mandela, poet and musician Ntsiki Mazwai has thrown shade at those who she claims didn’t appreciate Ma while she was alive.
Winnie would have turned 83 on Thursday and social media was filled with messages of tribute to her, from pictures of her life to renewed calls for Cape Town airport to be renamed after her. continue reading
Source: TheCitizen
