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."
Much-needed relief
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.