AA predicts massive drop in petrol price in December

28th November 2018

By: News24Wire

  

Font size: - +

Motorists can expect a R1.85 reduction per litre in the price of petrol, with diesel coming down by an estimated R1.40, and illuminating paraffin dropping by R1.28, the Automobile Association (AA) predicted on Wednesday.

The association was commenting on unaudited month-end fuel price data released by the Central Energy Fund.

With these expected drops, the fuel prices will return to levels last seen around the middle of 2018. 

The AA warned that the "massive" fuel price drop could, however, be tempered by adjustments in the retail and wholesale margin, and the possible continued use of the slate levy.

The slate levy, according to the AA, is used to claw back losses from fuel price under-recoveries when the cumulative petrol and diesel slate balances exceed R250-million. At the end of September the negative balance was R2.2-billion, and this was apparently counteracted by the imposition of a slate levy of 21.92 cents during November.

"The see-saw ride in fuel prices over the past year has shown just how great the impact of international petroleum pricing and the rand/dollar exchange rate is on the lives of ordinary citizens. The outlook for fuel pricing into 2019 remains cloudy, but we are hopeful that some stability will return," the AA said.

Edited by News24Wire

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION