Rand’s best performance since February offset by stronger international oil prices.
The Automobile Association (AA) has tabled its final fuel price prediction for December with only users of petrol vehicles benefitting from an early present at the pumps.
Commenting on the second and final unaudited data report released by the Central Energy Fund on Friday (27 November), the AA said it expects the price of petrol to drop by 27 cents a litre as opposed to 36 cents, while diesel, which was set for a decrease of four cents, will instead go up by 13 cents and illuminating paraffin by 22 cents.
“International product prices of refined fuels spiked just before mid-month, but then pulled back. Petrol clawed back its losses to end in positive territory, while diesel swung further into negative territory,” the association said in a statement, adding that the Rand’s performance against the greenback, which saw it strengthening to a high of R15.15, rated as its best last seen in February.
It however stated that, “the fly in the ointment is that the international price of refined fuels has trended upward over the last ten days, so here’s hoping it doesn’t spoil the party. It has been a long time since a stronger Rand was able to come to the rescue of South African fuel users, and if the current trend continues, the country seems set for improved fuel price stability as we enter 2021”.
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