The Automobile Association of South Africa (AA) has said that the prices of petrol and diesel are likely to fall even further at the end of the month.
This prediction is based on unaudited fuel month-end fuel price data released by the Central Energy Fund.
The further decline in petrol prices is due to a slightly stronger Rand and cheaper international petroleum prices, the AA said.
It said the current data shows that petrol will be down by as much as 27 cents a litre, with diesel lower by around 11 cents.
“The only fly in the ointment is illuminating paraffin, whose basic fuel price increased while petrol and diesel were falling, meaning a 15 cents-a-litre rise for the popular lighting and heating fuel is on the cards,” the AA added.
Fuel price changes
- Petrol – R0.27 per litre decrease
- Diesel – R0.11 per litre decrease
- Illuminating Paraffin – R0.15 per litre increase
The AA said the Rand has maintained its strength against the US dollar throughout October, with the firming trend accelerating in the past week.
“This gradual appreciation has been mirrored by international oil prices, which softened throughout the month, with steeper reductions seen over the past ten days.”
It added that exchange rates and oil prices have shown more stability over the past two months, suggesting that fuel prices have reached an equillibrium.
“We are hoping that this is the case, because fuel price stability would come as a welcome relief to individuals and corporates alike in the current economic conditions,” the AA said.