The Automobile Association says South Africans will pay less for some fuels when the prices are adjusted in the first week of December 2020.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA said fuel price data shows a mixed price outlook for the end of November, with the rand appreciation being countered by a sharp spike in international oil prices.
"It is quite unusual to have such a spread of price outlooks as is currently the case," the AA says.
With this, it looks as if petrol is set to drop by 36 cents a litre while diesel will drop by just four cents a litre. Paraffin on the other hand will be increased by 10 cents a litre.
The Association says the recent spike in the international prices of refined fuels ends a month-long price decline. The international price of diesel increased by nearly 20 percent between the November 2 and November 11 before slightly decreasing. Petrol saw an increase of more than 15 percent as well.
"Fortunately, the rand has fended off most of these increases and has appreciated strongly against the US dollar, dipping below R15,50 to the dollar on November 10."
The Association says that the currency and oil price fluctuations were attributable to world consumption rebounding faster than production, and what it called the “background noise” around the US election of Joe Biden as president. It also says that optimism in the wake of the announcement of a COVID-19 vaccine was being countered by jitters over renewed lockdowns in Europe and the rapid spread of COVID-19 in the US.
"With the South African economy in its current fragile state, fuel users will be among the first to feel any economic shocks," the AA concludes.