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Fuel-price breather as exchange rate recovers - AA

2016-02-16 12:14

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."

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.

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