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AA predicts petrol price going down and diesel going up in November

Oct 31, 2018
AA predicts petrol price going down and diesel going up in November

Fuel prices have moderated during October, with the prospect of some relief for petrol users in November, the Automobile Association of South Africa (AA) said on Wednesday.

The AA initially predicted more increases for all types of fuel after assessing unaudited mid-month fuel price data released by the Central Energy Fund.

"...users of diesel and illuminating paraffin will have to cough up more according to the unaudited month-end fuel price data released by the Central Energy Fund," the AA added.

"The exchange rate started the month badly but has since levelled out. The Rand's modest gains against the US dollar have helped cushion the impact of rises in the landed price of fuel in the case of diesel and illuminating paraffin.

"Both diesel and illuminating paraffin experienced substantial jumps in their landed prices, whereas the landed price of petrol remained almost unchanged in October."

'2018 one of the most tumultuous years in history for South African fuel users'

It said that; "We do need to note that international petroleum prices have shown modest declines in the past month, which could be seen as 'a cause for optimism'.

"If the Rand maintains its current trajectory of relative stability, this could augur well for the fuel prices as the Christmas season approaches. However, we caution against premature celebration."

The AA noted that 2018 has been one of the most tumultuous years in history for South African fuel users, "and the economy is still fragile and easily spooked".

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