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Petrol and diesel prices are likely to fall at month-end, with a small increase predicted for illuminating paraffin. This is according to the Automobile Association, which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The AA forecasts that petrol is poised for a reduction of between 14 and 17 cents a litre with diesel set to fall by approximately 20 cents a litre. The only upward mover is illuminating paraffin, with the current data showing the fuel up by around five cents a litre.

"So far in October we have seen both the Rand/US dollar exchange rate and international oil prices working in South Africa’s favour. After a large spike in the daily exchange rate in the second half of September, the Rand has returned to its previous leisurely strengthening trajectory, improving from around R16.70 to the dollar at the start of October to its current level of about R16.55," the AA says.

The Association says that despite some fluctuations in international oil prices, the basic fuel prices were trending slightly downwards.

The Association says there definitely seems to be some stability returning to oil as the world’s markets begin to find their equilibrium again.

"We hope these trends consolidate towards month-end, bringing much-needed relief to fuel users countrywide," the AA concludes.

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