The strength of the Rand has defeated the climbing oil price, increasing the possibility of substantial fuel price cuts at the end of this month.
This, according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel-price data released by the Central Energy Fund.
AA media spokesperson, Layton Beard, said the Rand firmed substantially against the US Dollar in the first fortnight of August.
“However, international petroleum prices showed a sharp jump over the same period. Fortunately for South Africans, the Rand is ahead in the contest and the current data indicates considerable price reductions at month end,” said Beard.
Petrol is slated for a reduction of up to 69 cents a litre, diesel 94 cents a litre and paraffin is showing potential to drop by 92 cents.
“The fuel price for September will depend on whether the Rand can continue to counter upward trends in international petroleum prices. Any flattening out of the Rand’s gains would be negative for the fuel price, but there would have to be a substantial reversal for the current picture to be spoiled before the end of August,” concluded Beard.
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