Petrol price expected to decline in December

By Jessica Anne Wood

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.

 

 

 Handy tip: Looking for car insurance? You can apply on Justmoney.

Recent Articles

Featured What are the benefits of living in a “Zoom Town”?

With many careers moving online, work-from-home employees have realised they can live in smaller suburbs or towns at a lower cost and enjoy the benefits of a slower lifestyle, while keeping their jobs.

You can’t cash cheques anymore in South Africa – we find out why

In November 2020, the South African Reserve Bank (SARB) announced that cheques would be discontinued from 1 January 2021. But what guided this decision? We have a look at what the pitfalls have been of using cheques, and the consequences of removing them from the payment system.

The perks of investing in student accommodation

With the constant influx of new students entering tertiary institutions, there’s usually a steady demand for student accommodation. As an investor who’s interested in the property market, should you consider student accommodation?

Are you financially secure enough to buy your first home?

When you buy your first home, you need to make sure you’re in a secure financial position so that you can stay afloat in spite of your increased financial responsibility. But are you aware of all the costs you’ll have to carry?

Deals

Rouge Day Spa Tuesday Special

Price: Available on request
When: Tuesdays
Where: Cape Town

Monte Vista Two Nights Special

Price: Available on request
When: Until 31 December 2021
Where: Montagu

Century City Hotel 4 Nights Special

Price: From R1100
When: Until 31 January 2021
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions