Petrol price drops with 49c
There will be cheers at the pumps as the oil price softens.
Oil prices are in a downward trend as exchange rate plays a key factor.
Encouraging mid-month fuel price data has been aided by receding international petroleum prices, meaning good news for motorists in August.
This is according to the Automobile Association (AA), which was commenting on unaudited data released by the Central Energy Fund (CEF) this week.
“The oil price has shown a gradual downward trend, and has continued to decline since our mid-July review of the fuel price picture,” the AA says.
“And despite some rand weakness against the US dollar in the last few days, the South African currency unit has traded in a fairly tight band around R12.40 to the dollar since mid-month.
“The result is that most of the benefit of lower international product prices will be passed on to the motorist.”
The AA adds that current data indicates that the petrol price would be lower by between 47c to 49c a litre, with diesel down by approximately 70c.
Illuminating paraffin was also set for a drop of around 68c a litre.
According to the Association, the recent downward trend in international petroleum prices would require a substantial reversal to heavily impact South African fuel prices.
“The short- to medium-term outlook for the fuel price is therefore likely to depend largely on the exchange rate,” the Association concludes.
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