South Africans should expect a drop in the price of petrol in September, according to the Automobile Association.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA said that fuel prices are showing slight reductions.
“Fuel prices are showing slight reductions at mid-month, in the midst of a tug-of-war between international oil prices and the Rand/US dollar exchange rate,” the AA said.
Petrol is currently set for a decrease of around nine cents a litre, with diesel coming down by around seven cents, and illuminating paraffin lower by 12 cents.
These expected changes to fuel prices are summarised as follows:
- Petrol – 9c per litre decrease
- Diesel – 7c per litre decrease
- Illuminating Paraffin – 12c per litre decrease
“Oil prices have slipped a little, with the landed price of fuels in South Africa showing a slight reduction in the first half of August,” the AA said.
“Over the past six weeks, oil has traded in a fairly narrow band, indicating that a more reliable plateau has been reached, absent any unexpected shocks.”
The Association added that the South African rand has lost ground against the US dollar since the beginning of the month, climbing from just over R16.80 to the dollar to around R17.40.
“This spells trouble for South African fuel users if it continues, but for now, the oil price is the stronger of the two forces,” the AA said.
“If this picture retains stability in the second half of the month, we expect only modest changes to the fuel price.”