“The average exchange rate used in the fuel price calculation has breezed past R16.40 to the dollar, approximately 25 per cent lower than this time last year,” the AA says.
“If the rate had held to its January 1 level, petrol would have dropped by up to 45 cents per litre.”
Despite the saving from the oil price, the petrol price is set to increase by between three cents and six cents.
A similar picture is seen for diesel and illuminating paraffin, where oil price weakness would have seen a reduction of R1 a litre with a flat exchange rate.
The currency’s continued decline has cut the drop to a lower 64 cents per litre for these fuel types.
“As we have previously commented, the weak oil price means South African motorists have yet to be exposed to the full effect of the Rand’s slump.”
“If the oil price turns the corner without some recovery from the Rand, substantial fuel price increases are likely,” the AA concludes.
