Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the Automobile Association is predicting the lowering of fuel prices across the board. “Rising tensions between the USA and Iran in the opening days of 2020 sparked a sharp increase in international oil prices, but the commodity has rebounded quickly. In fact, the oil price has returned to a level we might have expected had the US-Iran flare-up not taken place at all,” The Automobile Association.
The reduction in prices comes from the oil price reaching its lowest level since the beginning of December. Further reductions might have been possible if the Rand did not weaken against the US dollar, from R14.05 at the beginning of January to the current average R14.30.”We have some concerns over this ongoing weakening in the absence of any overt Rand shocks. It is not a good sign of confidence in the SA economy,” The Automobile Association.
95 Octane petrol will drop by around 13 cents a litre, whereas 93 Octane and both grades of diesel will only see a reduction of about four cents. Illuminating paraffin will be reduced by three cents. “We’re pleased fuel prices have managed to tread water at the start of a year, a year which is likely to again be extremely economically challenging,” The Automobile Association concludes.
