SOUTH AFRICA - PRICE OF PETROL EXPECTED TO DROP BY AS MUCH AS 69 CENTS

The Automobile Association of South African believes that the price of fuel will drop again at the end of August, on the back of a strong performing rand.

The AA said the strengthening of the rand had outweighed the increasing oil price, adding that the drop will be rather substantial – as much as 69 cents for petrol. In addition, the expectation is that the diesel price will drop by 94 cents, while paraffin is expected to drop by 92 cents.

“The Rand firmed substantially against the US dollar in the first fortnight of August,” said the AA on Monday.

The rand was trading at 13.40 to the US dollar on Monday. While there had been an upward trend for the price of brent crude, it hasn’t been compelling enough to counter the rand strength.

“However, international petroleum prices showed a sharp jump over the same period. Fortunately for South Africans, the Rand is ahead in the contest, and the current data indicates considerable price reductions at month end,” continued the AA.

“The fuel price for September will depend on whether the Rand can continue to counter upward trends in international petroleum prices.

“Any flattening out of the Rand’s gains would be negative for the fuel price, but there would have to be a substantial reversal for the current picture to be spoiled before the end of August.”

VIA -
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