Petrol price to drop thanks to weaker oil price

Handle fuel nozzle to refuel. Vehicle fueling facility.

Oil’s dropping to levels last seen in December will be to the benefit of motorists.

The Automobile Association (AA) has revised its earlier fuel price estimations for February by predicting an all-round decrease from next week Tuesday (4 February).

Commenting on the final unaudited data projection released by the Central Energy Fund, the AA said that the tensions between the United States and Iran earlier this year have subsided quicker than expected, and that oil is dropping to levels last seen in December in spite of a stronger rand, which will still be to the benefit of motorists.

“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 South African economy,” the association said in a statement.

Despite the national currency’s faltering against the greenback, however, the AA said it expects the price of 95 octane to drop by 13 cents a litre, diesel and 93 octane by four cents and illuminating paraffin 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,” it concluded.

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