Although not by much, South African fuel users will enjoy a breather on the wallet in September with prices of all grades of fuel set to drop. The Automobile Association reports this based on the unaudited month-end fuel price data released by the Central Energy Fund.
The Association’s outlook for September’s fuel price revision is that petrol will drop by around 11 cents a litre, diesel by up to 21 cents a litre and illuminating paraffin by around 12 cents. What this should translate to is R17,36 per litre for 95 unleaded petrol at the coast and R18,08 in the inland regions, where the cheaper 93 unleaded will retail for around R17,86.
“International petroleum prices continued their gradual retreat during August, having pulled back by around 10 per cent since the start of the month. We attribute this mainly to the Organisation of Petroleum Exporting Countries, which increased oil production gradually during the first half until previous production restrictions were removed,” the Association says.
The AA notes, however, that the Rand weakened a fair amount against the US dollar in August, meaning that South African fuel users will not enjoy the whole benefit of the lower oil price.
The Association says it is concerned about the trajectory of the Rand with regards to the fuel price, whose average exchange rate against the US dollar weakened considerably since the 6th of July. The Rand slid from around R14,32 on that day to over R14,70, with daily highs peaking in excess of R15,30.
This news comes as a relief after the steep increase that was seen last month which resulted in a price increase of around 80 cents a litre for 95 unleaded petrol and around 77 cents a litre for 93 unleaded petrol.