Fuel price drop expected in October
The likely decrease in prices of all grades of petrol has, however, narrowed from 11 to five cents in the case of 95 octane petrol, and from 25 to 20 cents for 93 octane
DESPITE the attack on a Saudi Arabian oil refinery this week, which sparked chaos in the oil markets, SA motorists could still be in for relief at the petrol pumps next month.
The likely decrease in prices of all grades of petrol has, however, narrowed from 11 to five cents in the case of 95 octane petrol, and from 25 to 20 cents for 93 octane.
Diesel has swung into the red though, with an increase of 13 cents a litre expected.
Illuminating paraffin is likely to follow suit, with an eight cent rise on the cards.
This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
‘The refinery attack was a game-changer. At a single stroke, five to seven percent of the world’s oil output has been wiped from the board, resulting in oil prices surging disproportionately,’ the AA said.
The association added that US President Donald Trump’s authorisation to release oil from that country’s strategic petroleum reserve could calm some oil price nerves.
‘But the potential for copycat attacks on other oil installations remains a concern.’
The AA has urged government to review short-term risk mitigation, including increased biofuel production, electric vehicles and better public transport.
‘Given the recent developments, these should now become urgent priorities for government,’ the AA said.
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