Paul Joubert, senior economic researcher at the SRI, explained that the weakening of the rand worked against a decline in local fuel prices. He said the rand traded at approximately R10,89 against the American dollar on average in September. In spite of the strengthening of the rand during last week, the rand has traded at an average of around R11,19 against the dollar to date in October.
“Fortunately, international petroleum product prices, the other factor that determines local fuel prices, also declined along with oil prices in the course of the month. The price of Opec oil, which was $96,45 a barrel in September, has averaged nearly 9% lower at $88,10 a barrel in October so far.
Joubert said the relevant period for calculating November’s local fuel prices only ends on Thursday, 30 October. He indicated that should the rand or oil prices experience large fluctuations between now and then, the fuel price adjustments in November could deviate significantly from this projection. The Department of Energy will announce the final fuel price changes on 31 October.