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Fuel price set for hefty drop

International oil prices have dropped steeply and motorists look set for a fuel price bonanza in the new year. This is according to the Automobile Association, which was commenting on unaudited mid-December fuel price data released by the Central Energy Fund. “The fuel price drop predicted by the data could be among the largest on record,” the AA said. “This is notwithstanding a gradual weakening of the Rand / US dollar exchange rate over the past fortnight,” the Association added.

Petrol is set for a drop of up to 105 to 107 cents per litre, while the decline for diesel is likely to be around 85 cents based on the current data. Illuminating paraffin is showing a potential reduction of approximately 90 cents per litre. The AA said that the likely month-end figure is difficult to predict, as international petroleum prices continue to decline while the Rand follows its weakening trend against the US dollar.

“To date, the weakening exchange rate has been outstripped by the reduction in petroleum prices and if this trend continues, the price motorists pay at the pumps could drop well below R12 per litre by month-end,” the Association said. “ We will monitor this trend closely and update motorists as the new year approaches."
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