In spite of the sorry state of the rand, South Africans are likely to experience further relief at the pumps next month.
If current trends persist, we could be looking at a petrol price decrease of between 55 and 64 cents in September, while diesel could drop by between 53 and 57 cents.
This is what the AA has predicted after having analysed mid-month fuel price data released by the Central Energy Fund.
While much can change before the end of this month, so far the depreciation of SA's rand against the US dollar has been offset by even steeper declines in international crude oil prices.
“The Rand has weakened considerably against the US dollar since the last week of July,” the AA said. “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.”
In fact, had the rand not depreciated, we would have been looking at a decrease of up to 83 cents a litre, the AA added.
However, the association also warned that the fuel price relief might not last for too long as there has been a slight levelling off in international fuel prices.
“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,” the AA said.