Fuel price drop on the cards for September

Motorists can expect a slight reduction in the price of petrol in September, according to a statement issued by the Automobile Association (AA).

“Fuel prices are showing slight reductions at mid-month, in the midst of a tug-of-war between international oil prices and the Rand/US dollar exchange rate,” said the association, while commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

Petrol is currently set for a decrease of around 9 c/litre, diesel by around 7 c /litre, and illuminating paraffin by 12 c/litre.

“Oil prices have slipped a little, with the landed price of fuels in South Africa showing a slight reduction in the first half of August. Over the past six weeks, oil has traded in a fairly narrow band, indicating that a more reliable plateau has been reached, absent any unexpected shocks,” the AA said.

The AA, however, noted that the Rand had lost ground against the US dollar since the start of the month, with the average rate having climbed from just over R16.80 to the dollar to nearer R17.40.

“This spells trouble for motorists if it continues, but for now, the oil price is the stronger of the two forces. If this picture retains stability in the second half of the month, we expect only modest changes to the fuel price,” the AA concluded.

For more information, visit the Automobile Association website by clicking here.

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