South Africans can look forward to cheaper fuel prices in February thanks to a strong rand performance in January, which has offset a stronger crude oil price, the Automobile Association (AA) said on Monday.<\/p>\n
“International (fuel) prices have risen by around 11%\u00a0 in a streak starting on 14 December 2017,” the AA said, commenting on unaudited month-end fuel price data released by the Central Energy Fund.<\/p>\n
“Fortunately for South Africans, the rand\/US dollar exchange rate has enjoyed a strengthening trend for almost as long, with the local currency accelerating its gains since the middle of January,” it said.<\/p>\n
The stronger rand means petrol is set to drop by 32 cents a litre at month end, with diesel down by 17 cents, and illuminating paraffin by 20 cents.<\/strong><\/p>\n “It is important for political leaders to note the strengthening effect the recent more hands-on governance approach has had on our exchange rate, reducing many input costs for both businesses and private citizens,\u201d the AA said.<\/p>\n \u201cHowever, at the same time, we re-iterate our concern that government should avoid using the fuel levy to fund fiscal shortfalls, as it is a concentrated tax with rapid effects on inflation and disposable incomes.”<\/p>\n Reviewing the fuel price history during 2017, the association said the year saw some of the highest fuel prices in the country’s history.<\/p>\n “If one graphs the exchange rate, it is inescapable that almost all sudden movements are associated with political events. We appeal to government to take a more judicious approach to policy and governance in future, as rand weakness affects poorer people disproportionately,” the AA said.<\/p>\n It noted that 2017 commenced with petrol at R12.85 a litre and diesel at R11.02, with a slight climb into March followed by a decline.<\/strong><\/p>\n By December 2017, petrol reached an all-time record high of R14.76 a litre<\/strong>.<\/p>\n Here are the expected adjustments (inland prices)<\/p>\n\n\n
\n Fuel<\/th>\n January official<\/th>\n February expected<\/th>\n<\/tr>\n \n 93 Petrol<\/td>\n R14.20<\/td>\n R13.88<\/td>\n<\/tr>\n \n 95 Petrol<\/td>\n R14.42<\/td>\n R14.10<\/td>\n<\/tr>\n \n 0.05% Diesel (wholesale)<\/td>\n R12.74<\/td>\n R12.57<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
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