Ongoing declines in the price of oil since the second week of the year will give South African motorists a breather in February, says the Automobile Association (AA).<\/p>\n
Citing unaudited month-end fuel price data released by the Central Energy Fund, the group predicts that a rebound in the oil price will see slight decreases across the board.<\/p>\n
The AA said it expects 95 Octane petrol will drop by around 13 cents a litre, with the other reductions marginal: 93 Octane petrol and both grades of diesel by four cents, and illuminating paraffin by three cents.<\/p>\n
“Rising tensions between the USA and Iran in the opening days of 2020 sparked a sharp increase in international oil prices, but the commodity has rebounded quickly.<\/p>\n
“In fact, the oil price has returned to a level we might have expected had the US-Iran flare-up not taken place at all,” the AA said.<\/p>\n
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.<\/p>\n
“We have some concerns over this ongoing weakening in the absence of any overt Rand shocks,” the AA said. “It is not a good sign of confidence in the South African economy.”<\/p>\n
“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 said.<\/p>\n
| Fuel (Inland)<\/th>\n | January Official<\/a><\/th>\n | February Expected<\/th>\n<\/tr>\n |
|---|---|---|
| 95 Petrol<\/td>\n | R16.16<\/td>\n | R16.03<\/td>\n<\/tr>\n |
| 93 Petrol<\/td>\n | R15.84<\/td>\n | R15.80<\/td>\n<\/tr>\n |
| 0.05% Diesel (wholesale)<\/td>\n | R14.62<\/td>\n | R14.58<\/td>\n<\/tr>\n |
| 0.005% Diesel (wholesale)<\/td>\n | R14.67<\/td>\n | R14.63<\/td>\n<\/tr>\n |
| Illuminating Paraffin<\/td>\n | R9.28<\/td>\n | R9.25<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n \n |