The Automobile Association says substantial further fuel price reductions are on the cards for January, but the exchange rate could spoil the party.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA says the South African fuel price has yet to fully catch up with considerably lower international petroleum prices, which have stayed at the plateau they reached at the beginning of December.
However, a sharp depreciation of the Rand versus the US dollar has been noticeable since the 4th of December and the AA says it will be monitoring this trend closely for the remainder of the month.
The Rand, which bottomed out at R13.70 to the US currency in the first week of December, took a sharp turn for the worse, reaching nearly R14.50 by the 11th of December before staging a slight recovery. "This hefty swing could offset oil price gains quite markedly if it continues," the AA comments.
As things stand at the moment, petrol is set for a R1.19 drop per litre, with diesel down a predicted R1.44 and illuminating paraffin lower by R1.32.
