THE Automobile Association (AA) has predicted a R1.85 reduction per litre in the price of petrol.
According to the AA, diesel will come down by an estimated R1.40, and illuminating paraffin dropping by R1.28.
However, the AA also pointed out that there is also the issue of the Slate Levy, which may or may not be retained.
The Slate Levy is used to claw back losses from fuel price under-recoveries when the cumulative petrol and diesel slate balances exceed R250 million.
At the end of September, the negative balance was R2.2 billion, and this was apparently counteracted by the imposition of a Slate Levy of 21.92 cents during November.
It is possible that not all of these decreases will make it through to the motorist.
“April, September and November saw adjustments to various levies which are included in the fuel price structure.
The December adjustment relates amongst others to wholesale and retail margins, which could cut off some of the decreases. Last year’s adjustments to these figures were under five cents a litre,” the association said.
If the Slate Levy has brought the slate balance below the edge by the end of November, it's likely it will be zeroed.
The AA said if not, a further Slate Levy will be applicable for December, which will offset some of the fuel price decreases.
Motorists are still in for a substantial drop in fuel price.
