Fuel prices will plunge in August. This is the news from the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF) …
Petrol will fall by around a rand a litre, diesel by approximately 70 cents, and illuminating paraffin by about 66 cents.
“The rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains,” the AA said. “The local currency was pegged at R15,70 to the dollar at the end of May, but is now sitting around the R14,20 mark.”
Impressive though the eand’s performance has been of late, it has contributed only about 25 cents of the expected fuel price drop in August. The balance has been due to the continued retreat of international petroleum prices in the wake of the United Kingdom’s vote to exit the European Union.
“The landed price of fuel has dropped by almost 20 percent from its June 22 level,” the AA said.
“When taken in the context of the prevailing economic conditions, this windfall will come as a welcome breather to both private motorists and the transport industry,” the Association concluded.
Strike action by petroleum sector
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
Regarding this strike, the South African Petroleum Industries Association (SAPIA) indicated fuel was in supply, and that it had contingency plans in place for the strike.
Via Twitter it said: “Motorists are advised to stick to their normal refuelling patterns to assist the petroleum industry in ensuring security of supply.”
Motorists are advised to stick to their normal refueling patterns to assist the petroleum in-dustry in ensuring security of supply
— SAPIA (@sapia_za) July 29, 2016