Decent fuel price drop on the cards

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IOL mot aug19 petrol price Independent Newspapers The price of petrol is set to go down by 10 cents per litre on 7 November. File photo: Neil Baynes.

The factors that control the fuel price, mainly exchange rate and international crude oil prices, have a tendency to change like the weather but in recent times we've had our fair share of not-so-perfect storms.

However, if this month's trends continue we could actually be in for a petrol price decrease of more than 60 cents a litre at the beginning of September.

Analysing the unaudited fuel price data released by the Central Energy Fund in mid-August, the Automobile Association is predicting better times ahead for local motorists.

“International petroleum prices have continued to moderate since late July. In addition, the rand/US dollar exchange rate has remained within a narrow band and is showing signs of a slight strengthening in favour of the Rand. These two positive factors have resulted in a large over-recovery on petrol in particular,” the AA stated.

The over-recovery ranges between 59 and 65 cents a litre in the case of petrol, while diesel sees a more modest over-recovery of 15 cents.

This could lead to one of the biggest fuel price drops that we've seen in recent times - as long as the exchange rate and oil prices continue for play in our favour for the balance of August.

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