Petrol price surprise this Spring
Motorists to reap the benefits this coming spring season.
Motorists can expect another significant fuel price drop in September with petrol prices expected to decrease between 55 cent and 64 cent a litre.
The Automobile Association (AA) said earlier this week the sharp decrease of the rand against the US dollar has been offset by the ongoing decline in international petroleum prices.
“The rand has weakened considerably against the US dollar since the last week of July,” the AA said.
Fortunately for South African fuel users, international oil prices have continued to slip, meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month.”
On Monday afternoon the rand traded at R12,91 against the US dollar, while Brent North Sea crude for October was unchanged at $49,03 a barrel.
“The combination of elevated stockpiles in the US and increasing production from the Organization of the Petroleum Exporting Countries (OPEC), sluggish demand growth, and a stronger US (dollar) would continue to pressure oil prices,” said Bernard Aw, market strategist at IG Markets.
The AA said without the impact of the exchange rate’s recent poor showing, the predicted drop in the petrol price would have been in a range of 75 cent to 83 cent a litre. The AA expects diesel to drop by between 53 cent and 57 cent a litre, and illuminating paraffin by 60 cent a litre.
This means Randfontein motorists will reap the benefits of saving R22,80 on a 35 litre tank, a welcome surprise for the coming spring season.
