Petrol price to drop on Wednesday

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Motorists of Mzansi, you can rejoice: The petrol price is dropping for a second consecutive month.

The Department of Energy has confirmed that both forms of fuel will encounter a decrease – but there’ll be no hat-trick for us in November, as illuminating paraffin is getting more expensive.

PETROL PRICE FOR NOVEMBER 2020

  • Petrol: Set to decrease by 27 cents.
  • Diesel: Set to decrease by 12 cents.
  • Illuminating Paraffin: Set to increase by 20 cents.

Adding these totals to the October fuel price gives us the following average cost-per-litre for petrol and diesel in November.

Fuel Inland Coastal Difference
Petrol R14.59 R13.89 Down by 27 cents
Diesel R12.25 R11.65 Down by 12 cents

WHY IS THE PETROL PRICE DROPPING IN NOVEMBER?

t’s all thanks to the Rand and its respectable performance against the US Dollar. Placid oil prices have also facilitated a consecutive decrease in fuel costs for South Africa – which is a general sign that the petroleum market is now stabilising. In fact, the AA is optimistic that this marks the ‘evening out’ of petrol prices for the months ahead.

“The Rand has maintained its strength against the US dollar throughout October. This gradual appreciation has been mirrored by international oil prices, which softened throughout the month, with steeper reductions seen over the past ten days. Exchange rate and oil pricing data have shown more stability over the past two months.”

“This suggests that fuel prices have reached an equilibrium. We are hoping that this is the case – because fuel price stability would come as a welcome relief to individuals and corporates alike in the current economic conditions.”

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