Fuel prices expected to drop further

This follows comment from the Automobile Association (AA), as based on the unaudited month-end fuel price data released by the Central Energy Fund.

According to an AA statement, fuel prices are set for more reductions due to a slightly firmer Rand and softer international oil prices.

The current data shows that petrol will be down by as much as 27 cents a litre, with diesel lower by around 11 cents.

"The only fly in the ointment is illuminating paraffin, whose basic fuel price increased while petrol and diesel were falling, meaning a 15 cents a litre rise for the popular lighting and heating fuel is on the cards," the AA commented.

With the Rand maintaining its strength against the US dollar throughout October, the AA added that the exchange rate and oil pricing data has shown more stability over the past two months, suggesting that fuel prices have reached an equilibrium.

"This gradual appreciation has been mirrored by international oil prices, which softened throughout the month, with steeper reductions seen over the past ten days," the AA noted.

"We are hoping that this continues, because fuel price stability would come as a welcome relief to individuals and corporates alike in the current economic conditions," it concluded.