Fuel price set to plunge – AA
JOBURG – AA predicts a fuel price decrease for August which is good news for motorists.
According to the Automobile Association (AA), fuel prices are set to plunge in August.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
Petrol will fall by about R1 a litre, diesel by about 70 cents, and illuminating paraffin by about 66 cents.
“The rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains,” the AA said.
“The local currency was pegged at R15.70 to the dollar at the end of May, but is now sitting around the R14.20 mark.”
The rand’s impressive performance has contributed about 25 cents of the expected fuel price drop in August.
“The landed price of fuel has dropped by almost 20 percent from its June 22 level,” the AA said.
“When taken in the context of the prevailing economic conditions, this windfall will come as a welcome breather to both private motorists and the transport industry,” the association concluded.
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
Regarding the strike, the South African Petroleum Industries Association indicated there was a supply of fuel and that the association had contingency plans in place for the strike. Via Twitter the association stated: “Motorists are advised to stick to their normal refueling patterns to assist the petroleum industry in ensuring security of supply.”
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