Fuel prices are set to plunge.

This is according to the Automobile Association (AA) which was commenting on unaudited data released by the Central Energy Fund on the last day of 2014.

“International petroleum prices have continued their steep drop,” the AA said.

“Not even a gradual appreciation in the rand/ US dollar exchange rate has been able to spoil the party, and across-the-board reductions of more than a Rand per litre seem to be on the cards.”

Petrol is slated to drop by up to 124 cents per litre, diesel by around 102 cents and illuminating paraffin by approximately 106 cents.

“There seems to be no consensus internationally on the level at which fuel prices will stabilise in the medium term, but the current situation is extremely positive for both individuals and business owners,” the Association concluded.