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The Automobile Association (AA) has confirmed that fuel prices will drop significantly in October.
The AA was commenting on the unaudited month-end fuel price data released by the Central Energy Fund and said fuel prices will change as follows:
- 93 Gasoline – 24c per liter decrease
- 95 Gasoline – Decrease of 33c per liter
- Diesel – 93c per liter decrease
- Illuminating paraffin 78c per liter decrease
The declines in the prices of the four types of fuel come despite the weakening of the rand in recent days relative to the US dollar.
“The daily average Rand fell to rand 16.10 per US dollar on September 18, following a long downward trend that began in the first week of August,” AA said.
“However, an abrupt jump to around R16.90 followed by a brief plateau and a further rise to almost R17.20 caught viewers off guard, and there is some concern about the short- to medium-term trajectory of the Rand.”
The AA also noted that stronger international oil prices have also led to weaker price declines than would have been the case otherwise.
“At about the same rate as the Rand, diesel and gasoline prices spiked and then fell back before starting a new rise,” AA said.
“If this trend of weakening the Rand and the increase in international fuel prices continues, it could be extremely negative for South African fuel users, and we will watch the changes with interest.”
Both the rand’s weakness and rising oil prices are in stark contrast to the general trends since early August, AA said.
“It is too early to say whether the spikes in both were a bump or the beginning of a more sustained reversal, but motorists must remain cautious given the ongoing instability in the local and global economies,” the AA said.
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