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The Department of Energy has published the final petrol price changes for October 2019. Let's take a look at how much more we'll be paying at the pumps.
Mid-September drone attacks on oil refineries in Saudi Arabia (impacting as much as 5% of the world’s daily oil production) have inevitably led to a spike in international oil prices.
Large oil refineries and storage depots have become increasingly difficult to defend against these sneak attacks, and further assaults will no doubt lead to volatile price fluctuations in fuel products in the future.
According to the Automobile Association:
The landed price of fuels in South Africa jumped by as much as a rand a litre in just three days after the attack, before settling back slightly. This turned a generally stable price picture into a negative one.
South Africa has been left at the mercy of the global environment. Motions to impeach US president Trump, calls for the UK’s Boris Johnson to step down, and enduring trade frictions between the US and China are among some of the unfolding events being carefully monitored by markets.
With the rand performing fairly well against the US dollar for the better part of September, however, South African pockets will be spared what could have been an uncomfortably large increase in fuel prices.
Without the rand’s performance, we could have been looking at price rises in excess of 40 cents a litre for some fuels,” said the Association.
South Africa’s transport economy is underpinned by liquid fuels and is extremely vulnerable to price impacts and fuel shortages. Government should urgently prioritise mitigations to protect against the potential of conflict-related instability in oil supply and pricing.
October Fuel Price Increase
According to the Department of Energy, here are the official fuel price changes, set to come into effect on 2 October 2019:
• Petrol 93 will decrease by 4 cents per litre
• Petrol 95 will increase by 18 cents per litre
• Diesel will increase by 25 cents per litre (both grades)
• Illuminating paraffin will increase by 25 cents a litre.
The difference in price between the 93 and 95 grades of petrol is due to a recalculation in the basic fuel price for each category, which are adjusted at the beginning of each quarter, according to the department.
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