Fuel price set to drop some more
SPRING promises not only to put leaves on the trees but line your wallet with a little more green as well, thanks to a lower fuel price.
The Automobile Association said in a statement that the ongoing rand strength has muscled out a climbing oil price, raising the possibility of substantial fuel price cuts this month end. This is according to the Automobile Association (AA), which was commenting on unaudited midmonth fuel price data released by the Central Energy Fund.
“The rand firmed substantially against the U.S. dollar in the first fortnight of August,” the AA said.
“However, international petroleum prices showed a sharp jump over the same period.
“Fortunately for South Africans, the rand is ahead in the contest and the current data indicates considerable price reductions at month end.”
Petrol could go down by 69 cents a litre and diesel by 94 cents.
“The fuel price for September will depend on whether the rand can continue to counter upward trends in international petroleum prices.
“Any flattening out of the rand’s gains would be negative for the fuel price, but there would have to be a substantial reversal for the current picture to be spoiled before the end of August,” the AA said.
The fuel prices are adjusted on the first Wednesday of each month.