Lower fuel prices expected in time for Christmas

Ahead of the Department of Energy’s announcement on Friday, the Automobile Association of South Africa (AA) stated that motorists can look forward to lower fuel prices in December. This is based on the unaudited month-end fuel price data released by the Central Energy Fund.

Petrol is expected to drop by around 41 cents a litre, diesel by 38 cents and illuminating paraffin by 36 cents.

“The Rand slumped sharply against the US dollar in the wake of Donald Trump's election as the next US president, but has regained some of its losses since then. Over the same period, international petroleum prices enjoyed a brief rally before heading lower. As a result, the likely decline in the fuel price will be similar to what was indicated in mid-November,” explained the AA.

However, the AA cautioned: “Future movements of the Rand and international petroleum prices have become very complex to anticipate, and since these factors are the chief drivers of the price we pay at the pumps, South Africans should be cautious about hoping for further fuel price drops.”

With US President-elect Donald Trump set to take office in January, including a number of other factors such as ratings agencies’ views of the South African economy, the AA expects volatility to be reflected in fuel prices over the coming few months.

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