Happy New Year, as S.Africa's fuel price falls

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The Automobile Association (AA) reports that the fall in international oil prices will bring down national oil prices in the New Year.

The AA commented on the unaudited mid-December fuel price data released by the Central Energy Fund.

“The fuel price drop predicted by the data could be among the largest on record. This is notwithstanding a gradual weakening of the rand / US dollar exchange rate over the past fortnight,” said the AA.

It is reported that the cost of petrol is set to drop between 105 to 107 cents per litre. Diesel is estimated to drop by 85 cents, while paraffin is set to drop by 90 cents per litre.

The month end figures are difficult to predict, as international petroleum prices continue to decline while the rand follows its weakening trend against the US dollar.

“To date, the weakening exchange rate has been outstripped by the reduction in petroleum prices and if this trend continues, the price motorists pay at the pumps could drop well below 12 rand per litre by month-end,” added the AA.