A drop of up to R1 a litre in the petrol price is expected in August, according to the Automobile Association (AA).
The organisation commented on Friday on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
Diesel could go down by about 70 cents and illuminating paraffin by about 66 cents, the AA estimates.
“The rand has continued its recent march against the dollar, with an almost uninterrupted two-month streak of gains,” the AA said. “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.”
At the same time the AA pointed out that, impressive though the rand’s performance has been of late, it has contributed only about 25 cents of the expected fuel price drop in August. The balance has been due to the continued retreat of international petroleum prices in the wake of the UK’s Brexit vote.
“The landed price of fuel has dropped by almost 20% from its June 22 level,” the AA said.
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
