Rosy outlook at the petrol pump next month, says AA

Continuing declines in international fuel prices look set to hand motorists an early Christmas present, with petrol set to reduce by more than 60c in all likelihood in the beginning of December.

The declining international fuel prices have offset the marginally weaker Rand / US dollar exchange rate and motorists look set to reap the benefits at month end, according to the Automobile Association, which was commenting on unaudited mid-month fuel price data from the Central Energy Fund.

“Petroleum prices have dropped by more than 10% over the past 15 days and the exchange rate has weakened only slightly in the same period,” the AA said. “This has set the stage for yet another substantial drop in fuel prices.”

Based on the current data, petrol is set to drop by between 69 and 72 cents per litre, with diesel showing an expected reduction of around 49 cents per litre. A decrease of around 43 cents per litre is on the cards for users of illuminating paraffin.

“This continues the trend we predicted last month, and statements from oil-producing countries seem to support the view that a slump in oil demand could see the trend sustained over a longer period,” the Association commented. “All indications are that motorists will have more money in their pockets at month end.”