Petrol price drops by R1 at midnight on Tuesday
Petrol will fall by around R1 a litre, diesel by approximately 70c, and illuminating paraffin by about 66c.
“The Rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains,” the AA says.
“The local currency was pegged at R15.70 to the Dollar at the end of May, but is now sitting around the R14.20 mark.”
Impressive though the rand’s performance has been of late, it has contributed only about 25c of the expected fuel price drop this week.
The balance has been due to the continued retreat of international petroleum prices in the wake of the United Kingdom’s vote to exit the European Union.
“The landed price of fuel has dropped by almost 20% from its June 22 level,” the AA says.
“When taken in the context of the prevailing economic conditions, this windfall will come as a welcome breather to both private motorists and the transport industry.”
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
Regarding this strike, the South African Petroleum Industries Association (Sapia) indicated fuel was in supply and that it had contingency plans in place for the strike.
Via Twitter, Sapia reports: “Motorists are advised to stick to their normal refuelling patterns to assist the petroleum industry in ensuring security of supply.”
