AA predicts fuel price decrease
This is in wake of oil price retreats in October, says the Automobile Association (AA).
POLOKWANE – The Automobile Association anticipates a slight drop in the price of fuel for November. Commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF), the association says this is in wake of oil price retreats in October.
In a statement released, the AA says the Rand has pulled back from its high point at the start of October. “This ongoing decline in the average exchange rate has meant that most of its losses have been clawed back, and it will have only a modest impact on the fuel price.”
AA says the international oil prices also declined slightly as October wore on ,and as a result, they are anticipating a drop of between eight and 18 cents for petrol, 14 cents for diesel, and 21 cents for illuminating paraffin in November.
The AA further says that the oil ticked up slightly from its late-October plateau and adds that this could be the start of a strengthening trend into November. “Whatever happens to the oil price and Rand from this point affects the price motorists will be paying at the pumps at Christmas. It remains to be seen whether this month’s reductions will continue for the rest of the year,” the association concludes.
