The Automobile Association (AA) has predicted a mixed fuel price outlook as the country heads into the festive season.
Commenting on data released from the Central Energy Fund, the AA says the price of petrol is likely to decrease by around 27 cents per litre, while diesel expected to increase by up to 13 cents per litre. Illuminating paraffin, is expected to increase by 22 cents a litre. AA is, however, predicting bad news for those who use paraffin for cooking and lighting.
The association says international oil prices, which have been on an upward trend and the Rand’s performance against the US Dollar, have contributed to the mixed outlook. The AA says if the rand continues to strengthen, fuel prices could stabilise as we head into the new year.
— AA South Africa (@AASouthAfrica) November 27, 2020
In November, AA said the currency and oil price fluctuations are attributed to world consumption rebounding faster than production, and what it called the ‘background noise’ around Joe Biden winning the United States election.
It also says that optimism in the wake of the announcement of a COVID-19 vaccine was being countered by jitters over renewed lockdowns in Europe and the rapid spread of COVID-19 in the US.
The association says the big drops in fuel prices over the past six months seemed to have worked themselves out of the system, but warned that nothing should be taken for granted.
“With the South African economy in its current fragile state, fuel users will be among the first to feel any economic shocks,” the AA warns.
Credit: Source link