The Rand has been steadily improving against the Dollar but the recent drone strike in Saudi Arabia has cut potential price reductions.
Over the last month, the Rand has shown improvement against the Dollar, climbing back from R15.30 to around the R14.75 mark as of yesterday 16 September 2019. This should have resulted in a nice reduction in the price of both petrol and diesel locally. However, the recent drone attack in Saudi Arabia has seen Oil prices surge around 6% overnight. The AA commented that "The refinery strike was a game-changer for the way oil price stability is viewed. At a single stroke, five to seven percent of the world's oil output has been wiped from the board, leading oil prices to surge disproportionately,"
The result locally is that if things stay as they are (unlikely with the current volatility) we could see a reduction of five cents for 95 octane and 25 to 20 cents for 93 octane. Diesel, on the other hand, could see an increase of 13 cents a litre from next month.
"The US President has authorised the release of oil from that country's Strategic Petroleum Reserve. This should calm some oil price nerves, but the potential for copycat attacks on other oil installations now that their vulnerability is clear remains a concern,” says the AA.