AA- Drop in fuel prices on the cards
JOBURG - Cash-strapped motorists could receive some much-needed relief as fuel prices are expected to drop in September.
This was according to the Automobile Association, which described the potential decreases – based on unaudited fuel price data released by the Central Energy Fund on 15 August – as substantial.
“Conditions look ripe for motorists to receive some much-needed relief at the pumps come the end of August,” it said in a statement.
International petroleum prices have continued to be moderate since July last year, the association explained.
“In addition, the Rand/US dollar exchange rate has remained within a narrow band and is showing signs of a slight strengthening in favour of the rand.”
According to the association, these positive factors had resulted in a over-recovery on fuel, particularly petrol.
“The over-recovery for petrol ranges between 59 and 65 cents per litre, while diesel and paraffin have seen more modest over-recoveries, at 15 cents and 12 cents per litre respectively.”
If the exchange rate remained stable or firmed while the two month-long decline in international petroleum prices continued, South Africans could be in line for one of the largest drops in the fuel price in recent times, the association added.
