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The Automobile Association of South Africa has painted a rosy outlook for fuel prices and predicts that motorists will be reaping the benefits at month end.
Commenting on un-audited mid-month fuel price data from the Central Energy Fund, the AA says continued declines in international fuel prices have offset a marginally weaker Rand / US dollar exchange rate.
It says Petroleum prices have dropped by more than ten percent over the past 15 days and the exchange rate has weakened only slightly in the same period - setting the stage for yet another substantial drop in fuel prices.
Based on current data, petrol is set to drop by between 69 and 72 cents a litre, with diesel showing an expected reduction of around 49 cents per litre. A decrease of around 43 cents per litre is on the cards for users of illuminating paraffin.
The Association said this continues the trend it predicted last month, and that statements from oil-producing countries seem to support the view that a slump in oil demand could see the trend sustained over a longer period.
All indications are that motorists will have more money in their pockets at month end, the AA concluded.
