Petrol prices to decrease
JOBURG – Automobile Association of South Africa (AA) has announced that motorists can anticipate a drop in petrol prices as the oil price retreat gives the fuel price a breather.
AA spokesperson, Layton Beard, said sustained declines in international oil prices since mid-month will bring some relief at the pumps. Beard was commenting on unaudited fuel price data released at month-end by the Central Energy Fund (CEF).
“Our mid-month concerns over stronger oil prices have been allayed by an ongoing retreat,” Beard said. He also stated that the situation had been further strengthened by a modest flattening of the rand/US dollar exchange rate, although there are again signs of an uptick which has the potential to affect fuel pricing towards year-end, he said.
Beard added that the reduction in diesel prices is likely to be muted, with the data indicating a drop of between eight and nine cents a litre. Illuminating paraffin is expected to be down by only three cents or so, but the petrol price is showing declines of between 18 and 22 cents a litre. “Fuel prices have returned to levels last seen in March of this year,” he explained.
However, Beard said volatility in both oil prices and the exchange rate continues to be evident, and he advised motorists not to bank on future price reductions.
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