This according to the Automobile Association (AA), commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The AA’s statement says the Rand slumped sharply against the US dollar in the wake of Donald Trump’s election as the next US president, but has regained some of its losses since then.
Over the same period, international petroleum prices enjoyed a brief rally before heading lower.
Petrol is set to drop by around 41 cents a litre, diesel by 38 cents and illuminating paraffin by 36 cents.
Future movements of the Rand and international petroleum prices have become very complex to anticipate. And since these factors are the chief drivers of the price people pay at the pumps, South Africans should not be too hopeful for further fuel price drops, the AA further stated.
A host of highly fluid factors are at play, including local political developments, ratings agencies’ view of South Africa’s economy, and the impact of possible changes in US policy after President-elect Donald Trump takes office.
The AA expects this volatility to be reflected in fuel prices in the next few months.
