Fuel cheer as oil retreats

After months of sustained pressure on the fuel price, fuel users will receive a substantial breather at the end of November going into December if the current fuel price trends continue.

Large reductions in fuel prices are forecast for December according to the unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

The main driver of lower prices has been an accelerating decline in international oil prices, which have trended downwards since the beginning of this month. The picture has been helped along by a modest improvement in the Rand / US dollar exchange rate.

The current data predicts a massive drop of R1.54 per litre for petrol, with diesel dropping by 92 cents and illuminating paraffin by 85 cents.

While this fuel price projection is the rosiest it has been for several months, caution should remain the watchword.

Automobile Association (AA) press release: 15 November 2018