Major fuel price drop a likely New Year’s gift for motorists
Petrol price could drop in early 2015.
THE New Year could start with a bang for motorists, with petrol prices predicted to drop between 105 and 107 cents per litre, according to the Automobile Association of South Africa (AASA) come to pass.
Making comments based on the unaudited mid-December fuel price data by the Central Energy Fund, the AASA believes petrol, diesel and paraffin costs will plummet. “The fuel price drop predicted by the data could be among the largest on record. This is notwithstanding a gradual weakening of the Rand/US dollar exchange rate over the past fortnight,” they said.
The AASA predicts a drop in diesel should be around 85 cents and a potential reduction in cost of paraffin at about 90 cents per litre.
“The likely month-end figure is difficult to predict, as international petroleum prices continue to decline while the Rand follows its weakening trend against the US dollar. To date, the weakening exchange rate has been outstripped by the reduction in petroleum prices.”
