Fuel price set to drop some more

The Witness - Wheels - - MOTORING -

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.

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