On Tuesday it was reported that the international oil prices have dropped steeply.
This means that motorists look set for a fuel price bonanza in the New Year.
This is according to the Automobile Association (AA), which was commenting on unaudited mid-December fuel price data released by the central energy fund.
“The fuel price drop predicted by the data could be among the largest on record,” the AA said in a statement.
“This is notwithstanding a gradual weakening of the Rand / US dollar exchange rate over the past fortnight.”
Petrol is set for a drop of up to R1.05 to R1.07 per litre.
While the price of diesel is likely to drop by around 85 cents, based on the current data.
Illuminating paraffin is showing a potential reduction of approximately 90 cents per litre.
The AA said that the likely month-end figure is difficult to predict, as international petroleum prices continue to decline while the Rand follows its weakening trend against the US dollar.
“To date, the weakening exchange rate has been outstripped by the reduction in petroleum prices and if this trend continues, the price motorists pay at the pumps could drop well below R12 per litre by month-end.
“We will monitor this trend closely and update motorists as the New year approaches,” said the AA in conclusion.
