There's some good news as we look at the petrol and diesel price forecast for October 2020. Here's a list of the potential reductions.

It's that time of the month again where the Automobile Association of SA (AA) releases its comments on theunaudited mid-month fuel price data from the Central Energy Fund.

There's some positivity as the exchange rate and the price of oil have been in our favour, resulting in some reductions forecast for October 2020.

"The Rand has put on a remarkable rally against the US dollar in recent weeks, with the daily exchange rate strengthening from R17.30 on August 21 to R16.70 on August 31 and since the start of September, the Rand has traded in a commendably tight range by recent standards," says the AA.

As it stands, the data shows a potential reduction in petrol price by26 and 36 cents a litre. Owners of diesel vehicles will be pleased to hear that the price of diesel could come down by as much as 88 cents a litre. Paraffin is on course for an 83 cent per litre reduction.

The AA does warn that things can change at any moment, particularly at this time of year, as the Northern Hemisphere regions start preparing for a cold winter and 'drive demand for heating fuels.'

"However, the seismic shock that COVID-19 has dealt to the world's economy, along with high stock levels, might mean the increased winter demand for heating fuels may not be enough to translate into substantial diesel price increases. A period of further oil price and Rand stability would give a much-needed breather to South African fuel users," the Association concludes.

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