Early Christmas present for drivers: Petrol price expected to drop in December

NOVEMBER 29, 2016

Good news for motorists. According to the Automobile Association (AA), the price of petrol is set to drop by about 41 cents a litre in December while diesel will drop by 38 cents and illuminating paraffin by 36 cents.

Commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF),  the association said the Rand had regained some of the sharp losses suffered in the wake of Donald Trump's election as the next US president.

“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 association continued; “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." 

It said that 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 Trump takes office".

"We expect this volatility to be reflected in fuel prices in the next few months," the association concluded.