Motorists can expect some relief at petrol pumps next month, thanks to a drop in global oil prices in October, the Automobile Association (AA) said on Thursday.
Commenting on unaudited fuel price data released at month-end by the Central Energy Fund, the AA said the petrol price is showing declines of between 18 and 22 cents a litre.
Petrol prices dropped by 69c at the end of August, while the hammering of the rand in September caused a minor shift in prices.
“Fuel prices have returned to levels last seen in March of this year,” the AA said on Thursday.
The reduction in diesel prices is likely to be muted, with the data indicating a drop of between eight and nine cents a litre, while illuminating paraffin is expected to be down by about three cents.
“Our mid-month concerns over stronger oil prices have been allayed by an ongoing retreat,” said the AA.
“The situation has been further strengthened by a modest flattening of the rand/$ exchange rate, although there are again signs of an uptick, which has the potential to affect fuel pricing towards year-end,” it said.
“However, volatility in both oil prices and the exchange rate continues to be evident, and we advise motorists not to take future price reductions for granted,” it said.