Fuel prices to plummet
JOBURG – AA explains how a fuel price decrease will take place in August.
The Automobile Association (AA) said that fuel prices will drop in August.
The association commented on unaudited month-end fuel price data released by the Central Energy Fund (CEF). Petrol will fall by around a Rand a litre, diesel by approximately 70 cents, and illuminating paraffin by about 66 cents on 3 August.
Public relations manager, Layton Beard said the Rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains.
“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,” he said.
He added, however, that impressive though the Rand’s performance has been of late, it has contributed only about 25 cents of the expected fuel price drop in August. The balance has been due to the continued retreat of international petroleum prices in the wake of the United Kingdom’s vote to exit the European Union.
“The landed price of fuel has dropped by almost 20 percent from its June 22 level,” said Beard.
“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,” added Beard.
Beard concluded that the predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
Regarding this strike, the South African Petroleum Industries Association (SAPIA)[https://www.sapia.org.za/] indicated fuel was in supply, and that it had contingency plans in place for the strike.
In a tweet Sapia said:
Motorists are advised to stick to their normal refueling patterns to assist the petroleum in-dustry in ensuring security of supply.
— SAPIA (@sapia_za) July 29, 2016
Details: AA, 0861 000 234; CEF, 010 201 4700; Sapia, info@sapia.org.za or 011 783 7664
