Ricochet News

AA predicts another fuel price drop in February

Jan 16, 2018
AA predicts another fuel price drop in February

Despite a recent increase in international oil prices, the Automobile Association of South Africa (AA) is predicting another huge fuel price decrease in February.

The AA, which was commenting on mid-month fuel price data released by the Central Energy Fund, is predicting that the price of petrol is set to decrease by at least 41 cents per litre while diesel will go down by 23-cents and paraffin will be reduced by 26-cents a litre.

In January, petrol prices dropped by 34c/litre while diesel prices fell by 26c/litre.

"The Rand appreciated against the US Dollar from R14.10 to R13.27, on average, during the period under review when compared to the previous one. This led to a lower contribution to the Basic Fuels Price on petrol, diesel and illuminating paraffin by 42.03c/l, 42.75c/l and 42.90c/l respectively," the Department of Energy said then.

The AA also said: "The Rand/US dollar exchange rate has had one of its flattest periods of trading in recent times. It has traded in a very narrow band between R12.30 and R12.40 to the US currency since the last week of December, bringing some welcome stability."

It noted that the international prices of petrol and diesel were also stable over the same period, although there was a slight climb in both in the second week of January.

The AA says: "The current data predicts a decrease in petrol of nearly 41 cents a litre, with diesel down by 23 cents and illuminating paraffin dropping 26 cents.

 "Continued stability in fuel prices for 2018 will largely depend on political and economic factors which affect South Africa's attractiveness as an investment destination."