WELCOME RELIEF FOR ROAD USERS: Amidst a national fuel strike, the price of petrol and diesel is set to drop in August 2016. Image: iStock
Johannesburg - Fuel prices will plunge in August. This is the news from the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
Petrol will fall by around a Rand a litre, diesel by approximately 70 cents, and illuminating paraffin by about 66 cents.
The AA said: "The Rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains. The local currency was pegged at R15.70 to the dollar at the end of May, but is now sitting around the R14.20 mark."
Impressive though the Rand's performance has been of late, it has contributed only about 25 cents of the expected fuel price drop in August. The balance has been due to the continued retreat of international petroleum prices in the wake of the United Kingdom's vote to exit the European Union.
The AA said: "The landed price of fuel has dropped by almost 20 percent from its June 22 level. When taken in the context of the prevailing economic conditions, this windfall will come as a welcome breather to both private motorists and the transport industry."
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
Read: #PetrolStrike: Here's how SA motorists can save fuel and avoid being stranded
Regarding this strike, the South African Petroleum Industries Association (SAPIA) indicated fuel was in supply, and that it had contingency plans in place for the strike. Via Twitter it said: “Motorists are advised to stick to their normal refueling patterns to assist the petroleum industry in ensuring security of supply.”