Possibility of lower fuel prices come month-end
There could be some relief at the fuel pumps at the end of the month, according to the Automobile Association (AA).
“International oil prices remained stable throughout October, but have been in decline since November began,” the AA says.
Current data suggests a reduction in the petrol price of 45c a litre, with diesel down by 38c and illuminating paraffin enjoying a 40c reduction.
Read: Emptier wallets as fuel prices skyrocket
However, the AA warns that the Rand had weakened sharply against the dollar in the wake of the US election results, stating that if the local currency did not return to its previous levels, the fuel price picture could be quite different at month-end.
The association adds that the currency is now also vulnerable to possible shifts in US policy when president-elect, Donald Trump, takes office early in 2017.
Read: Drop in fuel prices lower than expected by AA
“While the expected reduction at the pumps ahead of the Christmas season is welcome, South Africans would be prudent not to expect sustained drops in the fuel price over the next few months,” the AA concludes.
