The start of a new month comes with some good news for South African motorists after the Automobile Association (AA) announced on Monday, August 30, that the prices of all grades of fuel are set to drop by Wednesday, September 1.
According to a statement by the AA, it said the outlook for the new month 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.
” International petroleum prices continued their gradual retreat during August, having pulled back by around ten per cent since the start of the month. We attribute this mainly to the Organization of Petroleum Exporting Countries cartel, which increased oil production gradually during the first half until previous production restrictions were removed,” the Association indicated.
However, the AA says it does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated, as the Department of Mineral Resources and Energy are the only entity that regulates, sets, and adjusts fuel prices in South Africa.
The statement said further that the AA also notes that the Rand weakened a fair amount against the US dollar in August, meaning that motorists will not enjoy the whole benefit of the lower oil price. There are also concerns that about the Rand, whose average exchange rate against the US dollar weakened considerably since July 6, as it went from around R14,32 on that day to over R14.70, with daily highs peaking in excess of R15.30.
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