Substantial fuel price drop on the card for January – AA – Review

Substantial fuel price drop on the card for January – AA
The Automobile Association (AA) has predicted a substantial fuel price reduction for January, should the exchange rate not ‘spoil the party’.

Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA says the South African fuel price has yet to fully catch up with considerably lower international petroleum prices, which have stayed at the plateau they reached at the beginning of December.”

“However, a sharp depreciation of the Rand versus the US dollar has been noticeable since December 4, and we will be monitoring this trend closely for the remainder of the month.”

The association adds that the Rand, which bottomed out at R13.70 to the US currency in the first week of December, took a sharp turn for the worse, reaching nearly R14.50 by December 11 before staging a slight recovery. “This hefty swing could offset oil price gains quite markedly if it continues.”

According to a statement issued by the AA, petrol is set for a R1.19 drop per litre, with diesel down a predicted R1.44, illuminating paraffin lower by R1.32.

“The expected decreases are attributable to continued downward movement in international product prices, however the political and economic stability during the remainder of December, both at home and abroad, can also make a difference.”

“The local economic outlook remains sluggish, while international trade considerations and political instability in oil-producing regions could conspire to push international oil prices back up,” the Association comments.

“Despite this, we are hoping these factors are not enough to deny South African fuel users another much-needed breather at the pumps at the start of the new year,” the AA concludes.

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Substantial fuel price drop on the card for January – AA – Review

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