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Cape Town - The Automobile Association (AA) is cautiously optimistic about what might happen to fuel prices in November, because international oil prices had begun to retreat in recent days.
"If the exchange rate continues with its slight downward trend and oil follows, fuel prices for November could be virtually unchanged or slightly cheaper. We will be following the oil and exchange rate trends with interest," the AA said on Friday.
Commenting on unaudited fuel price data released at mid-month by the Central Energy Fund (CEF), the AA explained that stronger international oil prices have kept up the pressure on fuel prices in SA.
READ: Petrol price movement mixed
"In a reverse of last month's trend, the rand/dollar exchange rate has strengthened slightly, contributing about a four cents per litre drop in fuel prices across the board," said the AA.
"However, international oil prices jumped in the first weeks of October, offsetting the gains made by the rand. As a result, the current data shows petrol up by three to five cents a litre, with diesel climbing by 19 cents."
The Department of Energy decided to decrease 93 grade petrol by two cents per litre from October 7. The price of 95 ULP and LRP petrol, however, increased by 4c a litre, while the price of diesel 0.05% sulphur and of 0.005% sulphur increased by 53c and 51c a litre respectively.
The wholesale price of illuminating paraffin increased by 50c a litre, and of SMNRP (single maximum national retail price) illuminating paraffin by 67c a litre. The maximum retail price for LPGAS increased by 11c a kilogram.
In August all grades of petrol were reduced by 51c a litre after an increase of more than 40c per litre in July.
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