Johannesburg - Although recent currency fluctuations make it tricky to predict next month’s fuel price, current indications are that South Africans could look forward to a price cut in the region of R1 a litre.
The good news, according the Automobile Association, is that South Africa’s fuel price has yet to fully catch up with the current international oil prices, which have plunged in the last month. However, the rand to dollar exchange rate could still spoil the party to some degree.
Based on mid-month unaudited data from the Central Energy Fund, the AA says that a petrol price drop of up to R1.14 is possible in January, while diesel could go down by as much as R1.44.
However, the association cautions that the rand has depreciated somewhat since the beginning of December and this could offset oil price gains “quite markedly” if it continues.
“Up to 95% of the expected drop in fuel prices in January can - at this stage - be ascribed to these lower product prices, with the Rand/US dollar exchange rate contributing only five percent of the forecast decrease,” the AA stated.