As Nigeria hikes petrol price, South Africa reduces by 36 cents per litre
London, Nov. 17, 2020 (AltAfrica)-The price of fuel-petrol in South Africa is to go down by up to 36 cents a litre and diesel is likely to see a 4 cents drop. This is on the back of a stronger rand.
That is contrary to the situation in Nigeria where the pump price of Premium Motor Spirit (PMS) otherwise called petrol may settle at N168 – N170 per litre as the Nigerian National Petroleum Corporation (NNPC) increased the wholesale price of the product from N147 to N155.
The increase in Nigeria is coming despite the dwindling price of crude oil at the international market and the somewhat static state of the exchange rate from the last increase.
The Automobile Association AA of South Africa says the international price of diesel shot up by nearly 20% between 2nd and 11th November before pulling back slightly, but this was offset by a stronger rand-South African currency
“Fortunately, the rand has fended off most of these increases, and has appreciated strongly against the US dollar, dipping below R15.50 to the dollar on November 10,” the AA said in a statement.
According to the AA, the currency and oil price fluctuations are attributed to world consumption rebounding faster than production, and what it called the ‘background noise’ around Joe Biden winning the United States election.
It also says that optimism in the wake of the announcement of a COVID-19 vaccine was being countered by jitters over renewed lockdowns in Europe and the rapid spread of COVID-19 in the US.
The association says the big drops in fuel prices over the past six months seemed to have worked themselves out of the system, but warned that nothing should be taken for granted.
“With the South African economy in its current fragile state, fuel users will be among the first to feel any economic shocks.”
The rand is trading at R15.40 to the US dollar; R20.30 to pound sterling, and R18.21 to the euro. The euro is at $1.18, and the dollar is trading at 104.7-4 Japanese yen.
In China, a dollar is changing hands at 6.58 yuan and in India at 74. 48 rupees.
Stocks on the JSE Africa were mainly higher at the close of business on Monday, with the All Share index ending slightly higher.
This follows major bourses around the world after Moderna announced that early analysis from its phase 3 trial indicated that its COVID-19 vaccine was 94.5% effective at preventing the infection. @SABCNews