The AA has announced that it expects a big drop in the petrol price in December.
It stated that the price drop prediction is based on unaudited mid-month fuel price data released by the Central Energy Fund.
“After months of sustained pressure on the fuel price, fuel users will receive a substantial breather at the end of November going into December if the current fuel price trends continue,” said the AA.
“The main driver of lower prices has been an accelerating decline in international oil prices, which have trended downwards.”
A modest improvement in the US dollar-rand exchange rate was also noted.
The current data predicts:
- A decrease of R1.54 per litre for petrol
- A decrease of R0.92 per litre for diesel
- A decrease of R0.85 for illuminating paraffin.
The AA cautioned that the Department of Energy’s use of the Slate Levy to manage price changes may impact the final pricing.