AA predicts significant fuel price drop

Sharp climbs in the Rand/US dollar exchange rate have been offset by ongoing declines in international petroleum prices. This is according to the AA‚ which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

"The Rand has weakened considerably against the US dollar since the last week of July‚" the AA said in a statement. "Fortunately for South African fuel users‚ international oil prices have continued to slip‚ meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month."

Petrol is showing a drop of between 55 and 64 cents a litre‚ diesel between 53 and 57 cents‚ and illuminating paraffin 60 cents. "Without the impact of the exchange rate's recent poor showing‚ the predicted drops would have been in a range between 75 and 83 cents a litre‚" the Association commented.

The AA cautioned: "We are confident that fuel prices will drop at the end of August‚ but if oil prices flatten out‚ motorists will be at the whim of the Rand in coming months".

-  RDM News Wire.