This according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
AA spokesperson, Layton Beard, said the ongoing oil price weakness had been bolstered by a strengthening in the rand/US dollar exchange rate. Beard said, “The rand has recouped some of its losses against the dollar and traded in a fairly narrow band since the end of January. This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement.”
He said although the international price of diesel climbed slightly in the first half of February, the exchange rate offset some of diesel’s gains – without the stronger exchange rate, the increase would have been 17 cents a litre instead of the seven cents 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,” Beard concluded.
