Drop in fuel price imminent
Since the last week of July, the rand has weakened substantially against the US dollar and a steady decline in international oil prices could lead to a reasonable drop in the fuel price at the end of August, according to the AA.
MOTORISTS may be in for a pleasant surprise soon, following a recent statement from the Automobile Association of South Africa (AA) indicating a possible drop in the price of petrol.
Since the last week of July, the rand has weakened substantially against the US dollar and a steady decline in international oil prices could lead to a reasonable drop in the fuel price at the end of August, according to the AA.
This could result in a drop of between 55 and 64 cents a litre for petrol, between 53 and 57 cents per litre for diesel and illuminating paraffin looks set to drop by 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, adding, “We are confident that fuel prices will drop at the end of August, but if oil prices flatten out, motorists will be at the whim of the rand in coming months.”
