The petrol price could drop between 18 and 22c a litre‚ the Automobile Association (AA) said on Thursday.
But‚ the AA warned‚ don’t get too hopeful of future price reductions.
“Sustained declines in international oil prices since mid-month will bring some relief at the pumps‚” said an AA statement‚ adding that this is based “on unaudited fuel price data released at month-end by the Central Energy Fund”.
It said the reduction in diesel prices “is likely to be muted‚ with the data indicating a drop of between 8 and 9c a litre”.
Illuminating paraffin is expected to drop by only 3c.
“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‚” the AA said.
‘Fuel price drop will be offset by drought and unemployment’
While a drop in the petrol price of 22c would be “welcome relief for consumers”‚ it is likely to be “offset by the severe drought that is plaguing South Africa’s grain producing regions”.
That’s according to Debt Rescue CEO Neil Roets‚ which explained that the parchedness “will lead to significant price increases in basic foods”.
The Automobile Association predicted the petrol price could drop between 18 and 22c a litre‚ based “on unaudited fuel price data released at month-end by the Central Energy Fund”.
Roets said “the present combination of economic factors was going to severely impact on consumers‚ many of whom were already deeply indebted”.
“Our massive unemployment rate of 25.5% coupled to the fact that most consumers owe more than 75% of their monthly salary cheques to financial institutions‚ the situation is dire to say the least‚” he said.
Dire except for Roets’ company‚ which “was seeing double-digit increases in its growth rate largely because of the growing number of deeply indebted consumers who were seeking relief by going under debt review”.