Another drop in fuel price expected
The fuel price is expected to drop yet again, despite the weak rand.
The Automobile Association (AA) says sharp climbs in the rand / US dollar exchange rate have been offset by ongoing declines in international oil prices.
“The rand has weakened considerably against the US dollar since the last week of July,” the AA says.
“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.”
Petrol is showing a drop of between 55c and 64c a litre, diesel between 53c and 57c, and illuminating paraffin 60c.
“Without the impact of the exchange rate’s recent poor showing, the predicted drops would have been in a range between 75c and 83c a litre,” the Association explains.
“While a slight levelling off has become apparent in the downward trend of international petroleum prices.
“We are confident fuel prices will drop at the end of August, but if oil prices flatten out, motorists will be at the whim of the rand in coming months,” the AA concludes.
