AA predicts drop in fuel price
Sharp climbs in the Rand/US dollar exchange rate have been offset by the ongoing declines in international petroleum prices.
Consumers will breath a sigh of relief after the Automobile Association of South Africa predicted that there will be a drop in the fuel price next month.
The AA was commenting on the unaudited mid-month fuel price data released by the Central Energy Fund.
“The Rand has weakened considerably against the US dollar since the last week of July,” said the AA.
“Fortunately for South African fuel users, international oil prices have continued to slip, meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month.”
The price of petrol can drop between 55 and 64 cents a litre, diesel between 53 and 57 cents, and illuminating paraffin 60 cents.
“Without the impact of the exchange rate’s recent poor showing, the predicted drops would have been in a range between 75 and 83 cents a litre,” said the AA.
If the oil price flattens out, consumers will be at the whim of the weaker Rand in coming months.
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