Fuel price gaining ground, but watch the USA
The AA’s prediction on the petrol price change in November
The Automobile Association of South Africa (AA) has said that prospects for a fuel price decrease at the end of October are looking positive. International petroleum prices softened between the 2nd and 11th October, giving an over-recovery of between ten and 12 cents per litre for diesel, 15 cents for illuminating paraffin and 24 to 25 cents for petrol.
While the exchange rate has remained largely stable over the same period, with a negative impact of below three cents per litre, the AA cautions that the effects of a possible United States (US) debt default make this situation largely unpredictable.
The general view seems to be that US politicians will smooth out their differences before the October 17th deadline for raising that country's debt ceiling. However, if a US default does take place, the effects on international exchange rates and the South African economy will be difficult to predict and could affect our fuel price outlook as well.
Automobile Association of South Africa (AA)
011 799 1000