International oil prices have dropped steeply and motorists are set for a fuel bonanza in the new year, the Automobile Association said on Wednesday.
“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,” the AA said in a statement.
Petrol is set for a drop of 105 to 107 cents per litre while the price of diesel was likely to drop by around 85 cents based on current data, the AA said.
Illuminating paraffin was showing a potential reduction of about 90 cents per litre.
The AA was commenting on unaudited mid-December fuel price data released by the Central Energy Fund. The likely month-end figure was difficult to predict, as international petroleum prices continued to decline while the Rand followed its weakening trend against the US dollar, the association said.
“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 R12 per litre by month-end,” the AA said.
“We will monitor this trend closely and update motorists as the new year approaches.” SAPA