Ricochet News

Expect a huge petrol price drop in September: AA

AUGUST 16, 2016
Expect a huge petrol price drop in September: AA

If a prediction from the Automobile Association (AA) of South Africa is anything to go by, then motorists are in for another huge petrol price relief in September when the price of petrol is expected to drop significantly. In August, the price dropped by 99c/l owing to the stronger rand and weaker oil prices.

The AA on Monday said the September drop could also be because of the strengthening of the rand.

"Petrol is slated for a reduction of up to 69 cents a litre, diesel 94 cents, and illuminating paraffin is showing a potential drop of 92 cents," it said - commenting 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."

The AA, however, said that international oil 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."

The final fuel price for September will still depend on whether the rand continues to firm, it said.

"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."