The Automobile Association says that continued Rand strength has outmuscled the climbing oil price, raising the possibility of substantial fuel price cuts for South Africa at the start of September.
The AA was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“The Rand firmed substantially against the US dollar in the first fortnight of August,” the AA said.
“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.”
The Association said that petrol was slated for a price reduction of up to 69 cents a litre. Diesel, meanwhile was predicted to fall by 94 cents a litre and illuminating paraffin by 92 cents a litre.
“The fuel price for September will depend on whether the Rand can continue to counter upward trends in international petroleum prices,” the AA explained.
“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.”
At the start of August, the price of petrol dropped by around R1 a litre.