The Automobile Association of South Africa (AA) said that the continued strengthening of the Rand has dominated, in spite of the rising oil price, increasing the possibility of a substantial fuel price cut for September. This is based on the unaudited mid-month fuel price data released by the Central Energy Fund.
“The Rand firmed substantially against the US dollar in the first fortnight of August. 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,” said the AA.
According to the AA, petrol could reduce by up to 69 cents per litre, and diesel by 94 cents per litre. Illuminating paraffin is showing a potential drop of 92 cents per litre.
“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,” highlighted the AA.
