Fuel to drop by 22c
Sustained declines in international oil prices since mid-month will bring some relief for motorists at the fuel pump.
This is according to the Automobile Association (AA) which 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 reduced by an ongoing retreat,” the AA says.
“The situation has been further strengthened by a modest flattening of the Rand/US dollar exchange rate, although there are signs of an uptick which has the potential to affect fuel pricing towards year-end,” the association adds.
The reduction in diesel prices is likely to be muted, with the data indicating a drop of between 8c and 9c cents a litre.
Illuminating paraffin is expected to go down with 3c whilst the petrol price is showing declines of between 18c and 22c a litre.
According to the AA fuel prices have returned to levels last seen in March of this year.
“However, unpredictability in both oil prices and the exchange rate continues to be evident, and we advise motorists not to take future price reductions for granted,” the association concludes.
