RAND RECOVERY: Petrol users are in for much-needed relief, says the Automobile Association of South Africa. Image: Fleet Magazine
Johannesburg - Ongoing oil price weakness has been bolstered by a strengthening in the Rand / US dollar exchange rate.
This according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
The AA said: "The Rand has recouped some of its losses against the dollar and traded in a fairly narrow band since the end of January. This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement."
Petrol users are in for much-needed relief; current indicators show a decrease of 56 to 59 cents a litre, with about 11 cents attributable to gains in the Rand.
The AA said: "It would benefit the economy considerably if the current environment of
low petroleum prices and a flatter exchange rate were to continue."
Although the international price of diesel climbed slightly in the first half of February 2016, the exchange rate offset 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.