The Automobile Association (AA) says that South Africans can look forward to lower fuel prices in December.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“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,” the AA said.
“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.”
The AA said that the price of petrol is set to drop by around 41 cents a litre, diesel by 38 cents and illuminating paraffin by 36 cents.
“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,” the AA warned.
“A host of highly fluid factors are at play, including local political developments, ratings agencies’ view of our economy, and the impact of possible changes in US policy after president-elect Donald Trump takes office. We expect this volatility to be reflected in fuel prices in the next few months,” the AA said.