A fuel price drop of 16 cents has been predicted for November by the Automobile Association (AA). This follows a proposal to cap fuel which will be finalised by January 2019, announced Minister of Energy, Jeff Radebe.
Speaking during a question-and-answer session on Wednesday, 31 October, Radebe said the proposal for the cap has now been circulated to wholesale fuel and retail industries, who will then provide feedback on it.
“We are very serious about changing and putting a cap on 93 octane,” Radebe said.
The ever-increasing price of fuel has made it difficult for the average South African to cope, leading to the cap proposal. “Government is deeply concerned by the rising cost of petrol in South Africa which is largely caused by the rand-dollar exchange rate and the price of crude oil,” Radebe said when the plan was first announced in October.
An interministerial task team was formed, comprising of officials from both the Department of Energy and the National Treasury, to examine ways to cushion the blow of another increase.
Previously, Radebe has imposed a temporary cap on the petrol price increase for the month of September.
A drop is expected for the price of 93 Octane fuel for November, while the price of both diesel and parafin will increase by 30 cents per litre.