Good news for motorists
GAUTENG - The fuel price is expected to drop by more than 40 cents to the litre next week.
Good news for motorists across the province as the fuel price is set to drop by more than 40 cents per litre.
According to the Automobile Association of South Africa, encouraging mid-month fuel price data has been buoyed by receding international petroleum prices.
This is according to the AA, which was commenting on unaudited data released by the Central Energy Fund (CEF) this week.
“The oil price has shown a gradual downward trend, and has continued to decline since our mid-July review of the fuel price picture,” the AA said.
They added that despite some rand weakness against the US dollar in the last few days, the South African currency unit has traded in a fairly tight band around R12,40 to the dollar since mid-month.
“The result is that most of the benefit of lower international product prices will be passed on to the motorist.”
The AA said current data indicated that the petrol price would be lowered by between 47 to 49 cents per litre, with diesel expected to decrease by around 70 cents per litre, whereas illuminating paraffin was also set for a drop of around 68 cents per litre.
The AA continued its statement that the recent downward trend in international petroleum prices would require a substantial reversal to heavily impact South African fuel prices.
The association concluded by adding that the short- to medium-term outlook for the fuel price is therefore likely to depend largely on the exchange rate.
