Petrol price set to drop
Petrol could drop between 55 and 64 cents a litre, in September.
Sharp climbs in the Rand/US dollar exchange rate have been offset by on-going declines in international petroleum prices.
This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“The Rand has weakened considerably against the US dollar since the last week of July,” the AA said.
“Fortunately for South African fuel users, international oil prices have continued to slip, meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month.”
This would mean added relief for motorists when partnered with the early August declines.
Petrol could drop between 55 and 64 cents a litre, diesel between 53 and 57 cents, and illuminating paraffin 60 cents.
“Without the impact of the exchange rate’s recent poor showing, the predicted drops would have been in a range between 75 and 83 cents a litre,” the AA commented.
“While a slight leveling off has become apparent in the downward trend of international petroleum prices.
“We are confident that fuel prices will drop at the end of August, but if oil prices flatten out, motorists will be at the whim of the Rand in coming months,” the AA concluded.
