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Strengthening Rand drives fuel price down - AA

2017-12-28 15:02

Image: Supplied

Cape Town - Fuel prices are set for a hefty drop after the Rand's strong performance against the US dollar, despite increases in international petroleum prices during December, reports the Automobile Association (AA).

The AA says: "The Rand has had a very strong run against the dollar since the middle of the month, gaining considerable ground after the ANC's electoral conference chose Cyril Ramaphosa as the new leader of the party." 

"After opening the month at R13.80 to the dollar, the Rand is now testing the R12.30 level."

Good news for SA

The AA says that despite higher international oil prices over December, all grades of fuel are set to fall at the Department of Energy's next price adjustment. 

The AA says: "We expect petrol will be down by up to 34 cents a litre, diesel by 26 cents and illuminating paraffin by 28 cents. The Rand – and, by extension, fuel prices – have proven vulnerable to political developments in South Africa over the past year.

"Cyril Ramaphosa's political and fiscal position ahead of the February 2018 budget speech is likely to be the most influential determining factor for fuel price movements in the short term."



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