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Great news for SA road users: Another fuel price drop expected

2016-08-15 14:07

THUMBS UP: SA Motorists can give another sigh of relief as fuel prices are set to drop in September 2016. Image: iStock

Cape Town - The strengthening Rand has raised the possibility of substantial fuel price cuts at the end of August 2016. This is according to the Automobile Association (AA), commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The AA commented: "The Rand firmed substantially against the US dollar in the first fortnight of August.

"However, international petroleum prices showed a sharp jump over the same period. Fortunately for South Africans, the rand is ahead in the contest, and the current data indicates considerable price reductions at month end."

Power of the rand

Petrol is slated for a reduction of up to 69 cents a litre, diesel 94c, and illuminating paraffin is showing a potential drop of 92c.

The AA continued: "The fuel price for September 2016 will depend on whether the rand can continue to counter upward trends in international petroleum prices. 

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"Any flattening out of the Rand's gains would be negative for the fuel price, but there would have to be a substantial reversal for the current picture to be spoiled before the end of August," the AA concluded.


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