The Automobile Association of South Africa (AA) says the petrol price could drop by between 55 cents and 64 cents a litre in September, despite a weak local currency.
Sharp climbs in the Rand/US dollar exchange rate have been offset by ongoing declines in international petroleum prices, the AA said in a statement on Monday (17 August).
The AA was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“The rand has weakened considerably against the US dollar since the last week of July,” the AA said.
“Fortunately for South African fuel users, international oil prices have continued to slip, meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month.”
At mid-noon on Monday, the rand was trading at 14-year lows at R12.91 to the dollar, having slipped to an all-time low past R20 to the pound.
Petrol is showing a drop of between 55 and 64 cents a litre, diesel between 53 and 57 cents, and illuminating paraffin 60 cents, the association said.
“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,” it said.
“While a slight levelling off has become apparent in the downward trend of international petroleum prices,” the AA said.
“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,” it said.
In August the price of 93 and 95 petrol declined 51 cents, while diesel dropped by 76 cents per litre.
So far in 2015, the price of petrol has increased from R10.78/litre in January to R13.26 in August.
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