The Automobile Association of South Africa has confirmed that the price of petrol is set to drop by around R1 a litre in August.
The price of diesel, meanwhile, will fall 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, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“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 Rand’s performance has been of late, the AA says 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% 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 added.
This drop in South Africa’s fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies, leading to the possibility of a fuel shortage.
However, the South African Petroleum Industries Association has indicated that fuel is still “in supply”, and that it has contingency plans in place for the strike.
“Motorists are advised to stick to their normal refuelling patterns to assist the petroleum industry in ensuring security of supply,” SAPIA said.
