Petrol prices are expected to drop by 27 cents per litre in December, according to the Automobile Association (AA) of South Africa.
The AA made the prediction based on the unaudited month-end fuel price data released by the Central Energy Fund.
“Petrol is slated to fall by around 27 cents a litre, while diesel’s price increase has been contained to around 13 cents a litre,” said the AA.
“The biggest loser is illuminating paraffin, which is set for a 22 cents-a-litre rise – bad news for those who use this fuel for cooking and lighting.”
This is summarised as follows:
- Petrol – 27 cents per litre decrease
- Diesel – 13 cents per litre increase
- Illuminating Paraffin – 22 cents per litre increase
The AA said that international product prices of refined fuels spiked just before mid-month, but then pulled back.
“Petrol clawed back its losses to end in positive territory, while diesel swung further into negative territory,” said the AA.
It added that the rand has put in an “impressive performance” against the US dollar during November, with the average exchange rate dropping into the R15.70 range in the last week.
“The fly in the ointment is that the international price of refined fuels has trended upward over the last 10 days, so here’s hoping it doesn’t spoil the party.”
“It has been a long time since a stronger rand was able to come to the rescue of South African fuel users, and if the current trend continues, the country seems set for improved fuel price stability as we enter 2021.”