There’s some good news for December as motorists could be in for a respite in the fuel price come December, with the Automobile Association of South Africa (AA) predicting a price reduction. This follows international petroleum prices decreasing from their late-October highs. This assessment is based on the unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
“International oil prices remained stable throughout October, but have been in decline since November began. The Rand/US dollar exchange rate firmed over the same period, making a welcome contribution to the picture,” explained the AA.
According to the AA, current data suggests a 45 cents per litre drop in the petrol price, a 38 cents reduction in the price of diesel, and a 40 cents decrease in the cost of illuminating paraffin. However, the AA stressed that the Rand has been weakened by the result of the US presidential election, and as such, if the currency does not return to its previous levels, come the end of the month, the fuel outlook may be quite different.
“In addition to short-term fluctuations, the Rand remains exposed to a possible ratings downgrade in South Africa. The currency is now also vulnerable to possible shifts in US policy when president-elect, Donald Trump, takes office early in 2017,” said the AA.
“While the expected reduction at the pumps ahead of the 2016 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 noted.
The current fuel price
The below tables indicate the rise and fall of the fuel prices during 2016.
