Good news for motorists – petrol price expected to drop
Motorists might see slight relief at the petrol pumps come month end.
The ongoing weak oil price has been bolstered by a strengthening in the Rand/US dollar exchange rate, according to the Automobile Association (AA).
“The Rand has regained some of its losses against the dollar and traded in a fairly narrow band since the end of January,” the AA states.
“This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement.”
Petrol users are in for much-needed relief as current indicators show a decrease of between 56c and 59c a litre, with around 11c attributable to gains in the Rand.
Although the international price of diesel climbed slightly in the first half of February, the exchange rate offset some of diesel’s gains and without the stronger exchange rate, the increase would have been 17c a litre instead of the 7c a litre currently predicted.
Illuminating paraffin is set for an increase of 10c a litre, which would have been 20c without the Rand’s recent gains.
“It would benefit the economy considerably if the current environment of low petroleum prices and a flatter exchange rate were to continue,” the AA concludes.
