Fuel price decrease on the cards for February – AA
This is due to the ongoing declines in the price of oil, says the association
The Automobile Association (AA) in a statement said fuel users will be given a breather this February due to the ongoing declines in the price of oil since the second week of January.
They were commenting on the unaudited month-end fuel price data released by the Central Energy Fund.
In the statement the association says despite the earlier US-Iran flare-up, the price of oil has dipped to its lowest level since the start of December.
“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,” said the AA.
They add that despite the Rand’s trend, having softened from its 1 January level of around R14,05 to the dollar to its current average of R14,30, all fuel types are set for a decrease at the end of the month.
• 95 Octane petrol will drop by around 13 cents a litre
• 93 Octane petrol and both grades of diesel by four cents, and
• Illuminating paraffin by three cents.
“We are pleased that fuel prices managed to tread water at the start of a year which is likely to again be extremely economically challenging,” the statement concluded.
