Fuel to swing lower as oil retreats – AA

Its spring and September will present all South Africans with a breather in the form of a price drop in the price of fuel.

The Automobile Association (AA) says that petrol will drop by around 11 cents a litre, diesel by up to 21 cents a litre and illuminating paraffin by around 12 cents.

“International petroleum prices continued their gradual retreat during August, having pulled back by around 10% since the start of the month. We attribute this mainly to the Organization of Petroleum Exporting Countries (OPEC) which increased oil production gradually during the first half until previous production restrictions were removed,” the association says.

The association has, however, expressed its concern about the trajectory of the rand, whose average exchange rate against the US dollar has weakened considerably since July 6.

The rand slid from around R14.32 on that day to over R14.70, with daily highs peaking in excess of R15.30.

Source: AA

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