The Automobile Association (AA) says local fuel prices could decrease next week.
Also read: Rising fuel costs in South Africa outpace inflation rates
The association based its predictions on unaudited data from the Central Energy Fund (CEF), which indicates that ULP95 petrol could drop by 54c per litre, while ULP93 is expected to decrease by 39c per litre.
Furthermore, diesel prices are forecast to drop by between 94c per litre and R1.02 per litre. Illuminating paraffin could decline by 95c per litre.
BusinessDay reports that oil prices stabilised on Wednesday as major shippers resumed their routes via the Red Sea and Suez Canal in the wake of attacks by Houthi rebels. This is the main reason for the expected price decreases, despite the average rand to US dollar ratio playing a smaller role.
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However, the association remains concerned about the overall high prices that impact consumers. ‘If the expected decreases are realised, petrol prices will still be higher than they were in January 2023, but diesel prices will be marginally cheaper at the same time.
‘We must see all of this in the context of consumers who are still recovering from steep fuel price hikes in September and October.’
Although 2024 is forecast to start on a positive note, it is still too early to determine whether the lower prices will continue due to geopolitical developments that have an impact on global oil prices.
‘For this reason, a sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes.’
‘We again call on [the] government to urgently initiate a transparent review of the fuel pricing structure to seek this solution.’
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Also read:
Anticipated December fuel price cuts offer relief for South African motorists
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