Petrol prices to drop
JOBURG – Motorists advised to maintain a conservative approach, and not take on additional expenses in the expectation of sustained fuel price drops.
South African fuel users are in for a treat due to the petrol decrease of 83 cents.
According to Automobile Association (AA), fuel users will reap a welcome benefit courtesy of rand strength and oil weakness in the wake of the United Kingdom’s vote to exit the European Union. The AA commented on unaudited mid-month data released by the Central Energy Fund (CEF).
“At the same time, international petroleum prices have retreated on concerns over economic uncertainty following the vote. As a result, fuel prices are showing favourable gains,” AA said.
The mid-month data sees petrol poised for a drop of up to 83 cents a litre, with diesel set for a reduction of 45 cents and illuminating paraffin around 42 cents a litre down.
“Despite this positive picture, predicting the likely position at the end of July remains complex,” the Association commented.
AA said that the underlying trend has been towards higher fuel prices over the past months as the rand weakened and international oil prices climbed and that it is not yet clear what effect recent events will have on this trend. “It would be premature to assume it has been disrupted.” the AA commented.
“Accordingly, we advise motorists to maintain a conservative approach, and not take on additional expenses in the expectation of sustained fuel price drops,” the Association concluded.
Related articles:
