Relief might be on the horizon for motorists, as the Automobile Association has predicted fuel prices may drop in September.
The Association explains that as a result of a decrease in oil prices, 95 octane petrol is expected to dip by roughly four cents, with diesel expected to decrease by 19 cents and illuminating paraffin by 24 cents.
“The only fuel type set for an increase is 93 octane petrol, which will climb by about six cents a litre,” the AA comments.
“The bad news for the month was the Rand, which pulled back from testing the R16.80 mark against the US dollar last month and headed towards R17.40 at mid-month, with a slight firming trend since. On average, exchange rate losses added around 17 cents a litre to next month’s petrol price. The good news is that a steady performance from international oil prices has offset the Rand’s weakness,” notes the AA.
The AA says failings in investor confidence has affected the Rand’s strength which has pushed fuel prices higher. As time passes this will hopefully return to a reasonable level.
“As the country comes to terms with the economic damage caused by the COVID-19 lockdown, there is also concern about government’s ongoing policy uncertainty and levels of corruption as highlighted by the President,” the Association says.