They state that further instability in the rand/US dollar exchange rate could offset a possible drop.
Current data is predicting a drop in fuel prices in July, but the AA has advised against premature celebrations.
“The good news is that preliminary data from the Central Energy Fund (CEF) for the middle of July is showing firm reductions in international petroleum prices,” the association says.
“The exchange rate picture is less positive, with the rand having steadily depreciated against the dollar since the end of last month.”
After a period of stability towards the last week of June, the exchange rate has climbed from R12.20 to the dollar to almost R12.40 to the dollar.
The drop in international petroleum prices has kept ahead of the exchange rate though, meaning that petrol is currently in line for a reduction of 28 cents a litre, with diesel and illuminating paraffin set for a decline of around 50 to 55 cents a litre.
However, the AA warns that a flattening of international petroleum prices or continued depreciation of the rand against the dollar could reverse this trend.
“The fuel price has shown increasing volatility in recent months, and we advise motorists to maintain a sensible stance towards their fuel expenditure,” the association concludes.
Springsites took to the Addie’s Facebook page to say what they think the chances are of a decrease in fuel price.
- Margaret Coetzee: “I give it a 10% chance.”
- Marius Malan (translated from Afrikaans): “It’s probably going down by 2c now, but next month it will probably increase by R2.”
- Lourina Jansen van Vuuren: “Zero.”
- Denis Mogensen: “Just to go up more than double later.”
- Andre Weideman: “Absolutely nothing.”
- Meredith Pollock: “I’ll believe it when I see it!”
