Exchange rate helps lower petrol price

2016-02-23 06:00
 Petrol users are in for much-needed relief, says the Automobile Association of South Africa.

Petrol users are in for much-needed relief, says the Automobile Association of South Africa.

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Ongoing oil price weakness has been bolstered by a strengthening in the rand/ US dollar exchange rate.

This according to the Automobile Association (AA), commenting on mid-month fuel price data of the Central Energy Fund.

In a statement the AA says: “The rand has recouped some of its losses against the dollar and traded in a fairly narrow band since the end of January. This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement.”

Much-needed relief

Petrol users are in for much-needed relief, the AA states. Current indicators show a decrease of 56 to 59 cents per litre, with about 11 cents attributable to gains in the rand.

The AA says: “It would benefit the economy considerably if the current environment of low petroleum prices and a flatter exchange rate were to continue.”

DieselAlthough the international price of diesel climbed slightly in the first half of this month, the exchange rate offset some of diesel’s gains – without the stronger exchange rate, the increase would have been 17 cents per litre instead of the 7 cents per litre currently predicted.

– Wheels24

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