Fuel price set to drop between 71c and 77c
Fuel prices are set for a substantial drop at the beginning of September, but motorists should be alert to the underlying fundamentals.
This is according to the Automobile Association (AA) which was commenting on unaudited fuel price data released by the Central Energy Fund (CEF) last week.
“Petrol is set for a drop of between 71c and 77c a litre, diesel will be lower by 50c to 53c, and illuminating paraffin down by about 56c,” the AA says.
“But the rand’s weakness against the US dollar has been expensive for motorists, fuel prices would have dropped by an additional 25c a litre if the currency had remained at its late-July levels.”
International petroleum prices have recently reached six-year lows, and the AA expresses concern over what trajectory the oil price might take when it reaches the bottom of the cycle.
“If and when the oil price flattens out, or increases, motorists will be fully exposed to any rand weakness,” the association concludes.
