The Automobile Association has said that global declines in the price of oil since the second week of 2019 will likely give South African motorists a breather for February.

The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.

According to its projections,

• 95 Octane petrol will drop by around 13 cents a litre;

• 93 Octane petrol will drop by 4 cents a litre;

• Both grades of diesel will drop by 4 cents a litre; and

• illuminating paraffin will decrease by 3 cents.

“Rising tensions between the USA and Iran in the opening days of 2020 sparked a sharp increase in international oil prices, but the commodity has rebounded quickly. In fact, the oil price has returned to a level we might have expected had the US-Iran flare-up not taken place at all,” the AA said.

“We’re pleased fuel prices have managed to tread water at the start of a year, a year which is likely to again be extremely economically challenging,” the AA said.

– Compiled by Jan Cronje

https://www.fin24.com/Economy/aa-projects-fall-in-fuel-prices-for-february-as-global-oil-price-declines-20200128