‘Significant’ petrol price cut to bring welcome festive-season relief

Motorists could benefit from a “significant” petrol price decrease ahead of the festive season‚ says the Automobile Association (AA).

“After months of sustained pressure on the fuel price‚ fuel users will receive a substantial breather at the end November going into December if the current fuel price trends continue‚” the AA said.

Data suggested the price of petrol could drop by R1.54 a litre‚ the price of diesel by 92c and illuminating paraffin by 85c.

“The main driver of lower prices has been an accelerating decline in international oil prices since the beginning of this month‚ helped by a modest improvement in the rand/dollar exchange rate.”

While this may be good news for many‚ the association said the department of energy had recently reintroduced the use of the slate levy to manage price changes‚ which could affect the final figure.

“Fuel users should also bear in mind that recent oil production cuts by Saudi Arabia could result in supply restrictions as we move into 2019‚ pushing prices higher‚” said the AA.

The fuel price prediction followed the release of unaudited mid-month data by the Central Energy Fund.

“While the current fuel-price picture is the rosiest it has been for several months‚ caution should remain the watchword‚” said the AA.

Source: TMG Digital.