Fuel price relief for motorists this November

Trips to the fuel station for both petrol and diesel users promise to be more pleasant as prices are set to become cheaper from Wednesday.

The Department of Mineral Resources and Energy confirmed on Monday that a litre of both grades of petrol will become R1.78 cheaper, while 0.05% sulphur and 0.005% sulphur diesel users will pay 85.08 cents and 82.08 cents less per litre at the pumps.

The adjustments mean that a litre of Petrol 93 and 95 – which currently cost R25.22 and R25.68 in the inland region – will cost R23.44 and R23.90 per litre, respectively, in the new month. Diesel (o.005% and 0.05%) prices will go from R25.01 and R25.22 to R24.18 and R24.36 per litre, respectively.

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The relief comes as average international product prices for petrol, diesel, and illuminating paraffin declined in the last month, the department confirmed.

The wholesale price of illuminating paraffin will decline by 97 cents, while the single maximum national retail price (SMNRP) for illuminating paraffin will decrease by R1.30 per litre. LP Gas will increase by R1.49 per kilogram.

Easing ahead

Commenting on the latest fuel price adjustments, FNB’s senior economist Koketso Mano said in a statement: “We continue to see the rand remaining undervalued as we process still hawkish monetary policy in advanced economies, especially with inflation forecasts being lifted for the year 2024. We are also still processing the development of a worse fiscal performance relative to the February budget, and so it’s only after the 2024 elections that we foresee the rand appreciating towards fair value and pressing less upward pressure to inflation.”

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“On the oil side, projections for global growth have held up, even with the world’s largest oil importer – China – experiencing a slight downward revision. The largest economy, the US, has surprised on the upside, and fortunately, oil supply in the US, Iran and Brazil has mitigated losses from Opec+, which has helped to keep the market relatively balanced,” Mano said.

Mano added that fears of a wider geopolitical conflict brewing in the Middle East have introduced some volatility to the market, with oil prices leaning closer to the $90 per barrel mark. Despite this uncertainty, she says FNB believes motorists may continue paying less at the fuel pumps, but this will depend a lot on political stability in international markets.

Savings time

Ester Ochse, product head at FNB Integrated Advice, said this is a good time for consumers to explore saving the extra rands in their pockets gained from the reduced fuel bill.

“Interest rates are very high and may be like that for the foreseeable future, so using the savings from the petrol price decrease to pay off expensive debt will be beneficial in the long run and will also save money in the long run.”

“The positive side to the high interest rates is one will be earning more in saving interest, so if you don’t have expensive debt, this may be an opportune time to move the fuel price savings to save for an emergency, as this will buffer one from any unexpected expenses that may pop up,” Ochse added.

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