Good news on the fuel price front is that sustained declines in international oil prices since mid-month will bring some relief at the pumps next month. This is according to the Automobile Association (AA) commenting on unaudited fuel price data released at month-end by the Central Energy Fund (CEF).
“Our mid-month concerns over stronger oil prices have been allayed by an ongoing retreat,” the AA says. “The situation has been further strengthened by a modest flattening of the Rand/US dollar exchange rate, although there are again signs of an uptick which has the potential to affect fuel pricing towards year-end.”
The reduction in diesel prices is likely to be muted, with the data indicating a drop of between eight and nine cents a litre. The petrol price is showing declines of between 18 and 22 cents a litre while illuminating paraffin is expected to be down by only three cents or so says the AA.
“Fuel prices have returned to levels last seen in March of this year. However, volatility in both oil prices and the exchange rate continues to be evident and we advise all not to take future price reductions for granted.”