The Automobile Association (AA) has on Thursday confirmed that the petrol price will go down after the Rand strengthened against the US dollar. The strength of the Rand comes after the ANC elected Cyril Ramaphosa as the party’s president in the national elective conference on 18 December.
“The Rand has had a very strong run against the dollar since the middle of the month, gaining considerable ground after the ANC’s electoral conference chose Cyril Ramaphosa as the new leader of the party. After opening the month at R13.80 to the dollar, the Rand is now testing the R12.30 level,” said AA.
The Association said all grades of fuel are set to fall at the Department of Energy’s next price adjustment.
“We expect petrol will be down by up to 34 cents a litre, diesel by 26 cents and illuminating paraffin by 28 cents,” added AA.
“The Rand and, by extension, fuel prices – have proven vulnerable to political developments in South Africa over the past year.
“Cyril Ramaphosa’s political and fiscal position ahead of the February 2018 budget speech is likely to be the most influential determining factor for fuel price movements in the short term,” concluded AA.