Photo by: Reuters
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.