South African motorists are in for a petrol and diesel price cut next week

With little over a week left before the Department of Mineral Resources and Energy (DMRE) adjusts the country’s fuel prices for November, the Central Energy Fund (CEF) has published fresh predictions that are bound to make all motorists happy. Petrol, diesel, and paraffin prices all face a price cut at the pumps as soon as next week.

The DMRE typically adjusts fuel pump prices on the first Wednesday of the new month. In this case, that falls on Wednesday, 5 November, with the department publishing the coming changes a day or two before. This is to give motorists enough time to plan their fuel habits accordingly and fill their cars before any big price surges.

Rejoice, for petrol and diesel price cuts are coming

Judging by the CEF’s latest round of fuel price predictions (captured 27 October), motorists won’t want to fill up until after the DMRE has adjusted the prices, to take advantage of the coming fuel price decreases. Of course, the CEF’s figures are not final and are subject to change. The CEF, in conjunction with the DMRE, is responsible for tracking those economic factors that influence the price of fuel locally, offering the most accurate representation.

Specifically, the CEF tracks the country’s Rand/US Dollar exchange rate throughout any given month, as well as the international oil markets in the same period. These are the main contributors that inform the DMRE’s decision, with cheaper oil prices and a strong Rand lending themselves to ‘over-recoveries’ (price decreases).

The CEF tracks this data for the DMRE and shares its findings publicly. Unfortunately, compared to figures captured last week, the over-recoveries below are not as strong as they once were. Where the CEF initially predicted larger price decreases for petrol and diesel (around 62c/l and 34c/l respectively), these have since changed in accordance with the economy, reflecting smaller (but still welcome) changes in coming fuel prices.

The DMRE is expected to announce the coming fuel price adjustments for November on Tuesday, 4 November.