A welcome drop in fuel prices
South African fuel users are set to reap a welcome benefit courtesy of the Rand's strength and oil weakness in the wake of the United Kingdom's vote to exit the European Union.
“After initially weakening in the wake of the UK referendum result in late June, the Rand has since strengthened steadily,” says the Automobile Association (AA).
“At the same time, international petroleum prices have retreated on concerns over economic uncertainty following the vote and as a result, fuel prices are showing favourable gains.”
The mid-month data sees petrol poised for a drop of up to 83c a litre, with diesel set for a reduction of 45c and illuminating paraffin around 42c a litre down.
“Despite this positive picture, predicting the likely position at the end of July remains complex,” the AA adds.
“The underlying trend has been towards higher fuel prices over the past months as the Rand weakened and international oil prices climbed.
“It is not yet clear what effect recent events will have on this trend, and it would be premature to assume it has been disrupted.
“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 concludes.
