Big jump in price expected for most grades of fuel in October - analysts



27-09-2019
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Fin24
Source

South Africans can expect to pay around 18-19 cents per litre more for 95 octane petrol in October, as higher global oil prices caused by an attack on a major Saudi oil installation filter through to the pockets of SA motorists, say analysts.

The Automobile Association expects a jump of around 19 cents for 95 octane. The price for 93 octane petrol, on the other hand, is expected to decline slightly.

The association expects diesel to jump by 25 cents per litre and illuminating paraffin by 24 cents.

The jump in global oil prices in the wake of the attack was offset, to some extent, by the rand not falling against the US dollar, it said. "Without the rand's performance, we could have been looking at price rises in excess of 40 cents a litre for some fuels."

Jayson Dunne, a director at Rubicon Risk Advisory, said in a note to clients that he expected an increase of 18c/l for Petrol 95 and 25c/l for Diesel 500.

"International product prices have stabilised over the past two weeks after the sharp increase relating to the bombing of Saudi oil facilities. This normalisation means that the outlook for November is much more benign than we speculated last week," he said.

The government is expected to publish the official changes to the fuel price on Sunday or early next week.

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