After months of steady fuel price increases, motorists will experience reprieve – albeit it a slight one – in November. The Central Energy Fund (CEF) has predicted that the price of petrol will drop by 3cents, which would be the first drop in eight months.
However, those who drive diesel-fueled vehicles may still experience an increase – the price of diesel will increase by 35cents per litre.
The CEF has attributed the 3cent decrease to a combination of the strengthening rand, and the global decrease in Brent crude oil prices.
Speaking to Business Insider South Africa, Senior Economist at the Bureau for Economic Research at the University of Stellenbosch, Hugo Pienaar, said that the price of petrol may either decrease or remain the same as that of October.
“I think the most important point is that the price [of petrol] will stay roughly the same, which in itself is positive after the sharp increases,” Pienaar said.
In July, President Cyril Ramaphosa set up an inter-ministerial committee to investigate the possible interventions that the state can implement to lessen the impact of fuel price hikes on locals.
The initial report was set to be completed by September, but has been postponed to the end of November.