fb
AA Vehicle Rates Calculator

Rates Calculator

Roadside Assistance

Roadside Assistance

Emergency Services

Emergency Services

AA Auto Centre

AA Auto Centre

AA Financial Services

AA Financial Services

AA Travel

AA Travel

Call me backCALL ME BACK

I need help choosing a product

  • MOBILE NUMBER *
  • PLEASE SELECT A PRODUCT

Rand weakness against the US dollar has paled into insignificance against the fuel price bonanza caused by the massive retreat of international petroleum prices, setting the stage for large reductions in fuel prices at month-end. This is according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The current data shows petrol down by up to R1.11 a litre, diesel by R1.10 and illuminating paraffin by R1.18. However, these declines must be weighed against the 25 cent increases to the fuel levies announced by the Finance Minister in February which come into effect in April.

The outlook based on the current data with the levy adjustments taken into account is for a decrease of up to 86 cents a litre for petrol, and up to 85 cents a litre for diesel. The levies are not applied to paraffin. 

"As the spread of the COVID-19 virus accelerates across the globe, world financial markets have plunged, with capital fleeing to safe-haven assets. The Rand has been sharply weaker against the dollar on this trend," the AA says.

"However, this has happened side-by-side with Saudi Arabia’s decision to break ranks with OPEC. Not only has Saudi Arabia slashed its crude prices, it has also increased production substantially." 

The AA says Saudi Arabia’s actions come at a time where global oil demand is in decline as the COVID-19 virus hits manufacturing and commerce, leading to a steep slump in the oil price. 

"The last time oil prices dropped this suddenly was in the first Gulf War, almost 30 years ago. However, it means good news at the pumps for South Africans.

The AA says it doesn’t believe the declines will end at their current levels.

"There is little indication of what the final picture of COVID-19 spread will be, nor where the Rand will stabilise against the dollar. It can also not be predicted how long the Saudis are prepared to hold out in their oil price war, since their oil industry is believed to be able to maintain profitability at substantially lower per-barrel prices than the current level," the AA notes.

The AA says it foresees an extended period of turmoil.

"It will take quite some time for the global economy to get back on an even keel after the current ongoing events, and the next two or three months seem set to provide some fuel price relief to hard-pressed motorists," it concludes.

About The Automobile Association of South Africa

The Automobile Association (AA) has been the trusted champion of the South African motorist and traveller for over 85 years. Along with our AA Accredited Sales Agents located countrywide, the AA offers access to over 50 benefits on 1 card as well as other travel and mobility services that extend far beyond 24-hour roadside assistance – from technical and legal advice, to emergency rescue services, roadside security and a mobile app suite. The AA offers specialised apprenticeships to help motor industry players build in-house skill, and short skill courses for individuals.

For more information please visit www.aa.co.za or aasa.mobi, or contact:

Automobile Association of South Africa (AA)
AA Public Affairs
011 799 1126 or 083 386 6954
press@aasa.co.za

Tools & Calculators
What is your Emergency?
The Automobile Association of South Africa

For over 90 years, we’ve provided you with roadside rescue and security, so you know you can rely on the Automobile Association day and night.

We aim to empower you as a road user and add value to your life with our products and services.

Mixed bag of fuel prices to end off the year – AA

South African motorists can expect a mixed bag of fuel price adjustments in December. The Automobile Association (AA) says current unaudited data from the Central Energy Fund (CEF) indicate a slight reduction in petrol prices, and more substantial increases to diesel and illuminating paraffin prices. Based on the CEF’s data, ULP95 is expected to reduce by approximately five c/l, while ULP93 is set for a reduction of approximately 16c/l. Diesel is expected to increase by between 40c/l and...

Blue Light behaviour a shameful blight on SA roads

The presence of Blue Light Brigades appears to be increasing with these high-speed motorcades now an almost daily occurrence on Gauteng highways. The Automobile Association (AA) says Blue Light Brigades pose a threat to road users, particularly as drivers in the vehicles transporting politicians and behave aggressively towards other motorists. “The vicious assault on three drivers on the N1 highway in Fourways, Johannesburg in 2023 is a good example of how ‘protection officers’ in the...

Fuel good times set to end in November

The five-month trend of fuel decreases is set to end in November according to the Automobile Association (AA). Commenting on unaudited data from the Central Energy Fund (CEF), the AA says it expects the first fuel price increase since May in November as a result of higher international product prices and a steady softening of the Rand against the US Dollar.   According to the CEF’s figures, ULP95 is expected to be slightly higher by around 14 cents a litre, while ULP93 is set for an...