Fuel price likely to drop next month

File photo: Newspress

File photo: Newspress

Published Jul 15, 2015

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Johannesburg - An unstable rand and wobbly international crude oil prices have hit South Africans in the pocket recently, but the volatility looks set to work in our favour next month.

According to the AA, preliminary data for the first half of July, attained from the Central Energy Fund, shows that South Africans could enjoy a petrol price reduction of around 28 cents a litre from August, depending on how the currency and oil prices pan out for the rest of the month.

"After a period of stability towards the last week of June, the exchange rate has climbed from R12.20 to the dollar to almost R12.40 to the dollar. The drop in international petroleum prices has kept ahead of the exchange rate though, meaning that petrol is currently in line for a reduction of 28 cents a litre, with diesel and illuminating paraffin set for a decline of around 50 to 55 cents a litre."

However, given all that aforementioned volatility, the AA also warns that we shouldn't get our hopes up too high.

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