The Automobile Association (AA) says the unaudited mid-month data from the Central Energy Fund suggests that South Africans could be in for a substantial drop in the price of both petrol and diesel.

The AA says lower international product prices are the reason behind the predicted decreases.

“The weaker Rand/IUS Dollar exchange rate, though, is taking away from the forecast decreases, which would have been more significant had the Rand been stronger.”

Petrol could go down by R1 per litre, while diesel could be R1.30 per litre cheaper. The price of illuminating paraffin could go down by 80 cents.

The association says any decreases in fuel prices now are welcome and will certainly bring relief to cash-strapped consumers, which, if realised, will bring prices down to rates last seen in February.

“These decreases are positive and will ease pressure on our economy and consumers. Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices, but a decrease in fuel costs will make a difference to many,” the AA adds.

The association adds that the outlook for June is made mid-month and will change before the official adjustment for June is made.

Nonetheless, the AA says it remains confident that significant decreases will be seen in fuel prices for June.