Possible big petrol price drop next week

JULY 29, 2015

There might be good news for motorists at petrol pumps in August, the Automobile Association of SA (AA) said on Wednesday.

In terms of current data the AA expects the petrol price could decrease by between 47 cents to 49c a litre. The price of diesel could go down by about 70c, while that of illuminating paraffin could drop by 68c a litre.

Commenting on unaudited data released by the Central Energy Fund (CEF) this week, the AA said encouraging mid-month fuel price data has been buoyed by receding international petroleum prices.

"The oil price has shown a gradual downward trend and has continued to decline since our mid-July review of the fuel price picture," said the AA said.

"And despite some weakness against the dollar the last few days, the rand has traded in a fairly tight band around R12.40 to the dollar since mid-month."

The AA said it therefore expected that most of the benefit of lower international product prices would be passed on to motorists.

"The recent downward trend in international petroleum prices would require a substantial reversal to heavily impact South African fuel prices," said the AA.

"The short- to medium-term outlook for the fuel price is, therefore, likely to depend largely on the exchange rate.”

---News24wire