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Fuel price breather as prices stay stable - AA

2018-07-27 09:50

Image: iStock

Better exchange rate performance and retreats in international oil prices will mean virtually unchanged fuel prices in August. This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data.

"During July, the recent weakening trend of the Rand against the US dollar slowed," the AA says, noting that the local currency lost some ground, but only marginally.
Over the same period, international oil prices showed a slight average decrease which almost exactly cancelled the Rand's losses.

READ: 'Fuel price deregulation won't fix the problem, won't ease pressure n consumers' - AA

"As a result, petrol is expected to increase by around two cents a litre, and illuminating paraffin by four cents a litre," the Association says. 
"On the plus side, diesel will be cheaper by approximately four cents a litre. After several successive fuel price increases, motorists and other fuel users are due a breather, and the general stability of the fuel price during July will come as a relief to many."

The AA notes that international oil prices showed a slight upward trend towards the end of July and says that motorists' budgets would probably remain under pressure for the rest of the year. 
"2018 has been a year of volatility in the fuel price, and the see-sawing Rand and oil price suggest that caution should be the watchword," the Association concludes.


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