What will the fuel price do in September?
Mid-August data suggests that renewed oil price strength and a turnaround in the rand/US dollar exchange rate have put the brakes on the substantial drops in fuel prices
As motorists, we are always hoping and praying that the petrol price keeps on dropping, as the cost of living is already so high.
Well, here is some information concerning the petrol price this month.
Mid-August data suggests that renewed oil price strength and a turnaround in the rand/US dollar exchange rate have put the brakes on the substantial drops in fuel prices.
This is according to the Automobile Association (AA), which was commenting on unaudited end-August fuel price data released by the Central Energy Fund (CEF).
“International petroleum prices have put in a surprising rally since the middle of the month,” the AA said.
It noted that a stronger rand would have cushioned this increase in international petroleum prices, but that this is now not the case given the latest developments related to the weakening rand.
In mid-August, when the rand was at stronger levels, the AA predicted that petrol would drop by up to 69 cents a litre, diesel by 94 cents a litre and illuminating paraffin by around 92 cents a litre. The association said it now expected petrol to fall by around 25 cents a litre, diesel by 54 cents and illuminating paraffin also by 54 cents.
The association further noted that while the impact of the significant devaluation of the rand against the US dollar would not be felt immediately, the effects of the weaker rand on fuel prices would be noticeable towards the middle and end of September, if it does not strengthen before then.
With the current projections at current rates, this is what can be expected for September. Keep your fingers crossed that the rand strengthens and the petrol price continues to drop!
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