The fuel price is likely to drop slightly as the international price of oil weakens across the globe. This is according to the Automobile Association (AA), which was commenting on the unaudited month-end fuel data released by the Central Energy Fund (CEF).
“The rand has pulled back from its high point at the start of October. This ongoing decline in the average exchange rate has meant that most of its losses have been clawed back, and it will have only a modest impact on the fuel price,” said the AA said to BusinessTech.
The international price of oil also declined slightly in October.
“As a result, we are anticipating November drops of between eight and 18 cents for petrol, 14 cents for diesel, and 21 cents for illuminating paraffin,” it said.
The AA also noted that the price of oil increased slightly during the last of October, and has pondered whether this indicates a strengthening trend for the month of November.
“Whatever happens to the oil price and rand from this point affects the price motorists will be paying at the pumps at Christmas. It remains to be seen whether this month’s reductions will continue for the rest of the year,” the AA said.