The Automobile Association (AA) of South Africa is confident that the petrol price will drop by as much as 69 cents to the litre next month.
The AA made a similar prediction earlier in the month, but there was always the possibility that circumstances would change. The fuel price decrease seems a certainty now.
The decrease in the price of petrol and diesel has been attributed to two things in particular. Firstly, the rand has performed well during the period in which data was gathered from the Central Energy Fund.
“The Rand remained firm over the past month, apart from a brief reversal caused by the Public Protector’s controversial comments on the role of the Reserve Bank,” said the AA on Wednesday.
Secondly, the downward trajectory for fuel prices around the world has been on a downward curve for a protracted period now. South Africa has not been immune to that trend.
“At the same time, international petroleum prices maintained their downward trajectory. This adds up to a pleasing drop in the fuel price which will be a patch of good news for many in the current economic conditions,” added the AA.
The price of diesel is set to drop by 62 cents to the litre next month, while illumination paraffin is expected to experience a 58 percent drop. It is good news all round, but especially for those who rely on the paraffin during the cold winter months.
“The drop in paraffin prices will be particularly beneficial to citizens who rely on this fuel for lighting, cooking, and especially heating, in the winter months,” added the AA.
“As ever, even medium-term predictions of the fuel price remain difficult in the current environment of political instability and weak economic conditions. We advise all fuel users to create space in their budgets for price increases if the picture should deteriorate further.”