Fuel Price Drop Expected in February

The Automobile Association released a statement saying global declines in the price of oil may just give South African fuel users a breather in February.

The observation comes from an unaudited month-end fuel price data released by the Central Energy Fund. Oil has dipped to its lowest level since the start of December. However, the Rand/US dollar exchange rate is steadily moving in the opposite direction, with the Rand having softened from its January 1 level of around R14.05 to the dollar to its current average of R14.30.

Despite the Rand’s reported trend, all fuel types are set for a decrease at month-end. 95 Octane petrol will drop by around 13 cents a litre, 93 Octane petrol and both grades of diesel by 4 cents and illuminating paraffin by 3 cents.

“We’re pleased fuel prices have managed to tread water at the start of a year, a year which is likely to again be extremely economically challenging,” the AA concludes.