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    South Africa-Fuel Prices

    South Africa: SAAA expects fuel prices to fall in January

    APA-Johannesburg (South Africa)

    South African motorists are expecting lower prices at the fuel pump starting on Wednesday (3 January), the South African Automobile Association (SAAA) has declared.

    This despite increases in international oil prices during December, according to the association’s analysis of unaudited month-end fuel data released by the Central Energy Fund.
    The SAAA said it expects the price of petrol to fall by as much as 34 cents a litre, diesel by 26 cents a litre, and lighting paraffin by 28 cents on Wednesday.
    "The Rand (local currency) has had a very strong run against the dollar since the middle of the month,” the SAAA said, adding that the Rand is “gaining considerable ground after the African National Congress's electoral conference chose Cyril Ramaphosa as the new leader of the party.

    After opening the month at R13.80 to the US dollar, the Rand is now testing the R12.30 level," the automobile agency said.
    The SAAA added that the Rand - and, by extension, fuel prices - have been vulnerable to political developments in South Africa over the past year.
    The strongest factor in determining fuel prices up to the February 2018 budget speech, it said, is likely to be Ramaphosa’s position on fiscal discipline, rather than oil prices or global politics.
    Ramaphosa was elevated to the governing party’s leadership following his triumph last week in an elective conference held in Johannesburg, beating former African Union Commission chair Nkosazana Dlamini Zuma to the leadership, in a closely contested campaign.


    NM/afm/APA

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