Significant drop in fuel prices predicted

By Drum Digital
18 August 2015

Motorists will be happy to know that the falling rand might bring good tidings with it in the coming month.

According to the Automobile Association, “The Rand has weakened considerably against the US dollar since the last week of July. 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.”

The petrol price looks set to drop by up to 64 cents a litre with the decline in international oil prices by the end of August, the AA predicts.

“Petrol is showing a drop of between 55 and 64 cents a litre, diesel between 53 and 57 cents and illuminating paraffin 60 cents,” said AA's Layton Beard.

“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.”

However, 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“.

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