THE Automobile Association (AA) has predicted a petrol price decrease of 36 cents per litre and a drop of four cents per litre for diesel next month.

The AA was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

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Illuminating paraffin, however, is likely to increase by almost ten cents a litre.

‘It is quite unusual to have such a spread of price outlooks as is currently the case,’ said AA spokesperson, Layton Beard.

The association says the recent spike in the international prices of refined fuels ended a month-long price decline.

‘The international price of diesel shot up by nearly 20% between 2 and 11 November before pulling back slightly, while petrol was up more than 15%.

‘Fortunately, the rand has fended off most of these increases, and has appreciated strongly against the US dollar, dipping below R15.50 to the dollar on 10 November,’ said Beard.

He said this can be attributed to world consumption rebounding faster than production, and the ‘background noise’ around the US election of Joe Biden as president-elect.

‘Under the circumstances, oil prices and the rand/USD exchange rate remain as stable as can be expected.’

Beard warned that nothing should be taken for granted, however.

‘With the South African economy in its current fragile state, fuel users will be among the first to feel any economic shocks.’

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