The Rand has recovered some of its losses against major foreign currencies and this will allow South Africans to benefit from lower international petroleum prices from March, said the Automobile Association (AA).
According the AA current indicators show a decrease of between 56 and 59 cents a litre, with around 11 cents attributable to gains in the Rand. However the wholesale price of diesel is anticipated to remain stable. Reportedly, diesel has been slightly more expensive after falling in January but it was predicted that prices will fall by about a cent on 2 March.
Further, the association revealed that although the international price of diesel climbed slightly in the first half of February, the exchange rate offsets some of diesel’s gains – without the stronger exchange rate, the increase would have been 17 cents a litre instead of the seven cents a litre currently predicted. Illuminating paraffin is set to rise by ten cents a litre, which would have been 20 cents without the Rand’s recent gains, the AA added.
Some predict that if the current recovery for petrol persists until 25 February, the retail price of petrol will fall by 80 cents per litre. “It would benefit the economy considerably if the current environment of low petroleum prices and a flatter exchange rate were to continue," the Association declared.