Fuel prices buoyed by oil, despite weak Rand AA

Association says sharp climbs in exchange rate offset by declining oil prices

Sharp climbs in the Rand / US dollar exchange rate have been offset by ongoing declines in international petroleum prices. This is according to the AA, which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

"The Rand has weakened considerably against the US dollar since the last week of July," the AA said. "Fortunately for South African fuel users, international oil prices have continued to slip, meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month."

Petrol is showing a drop of between 55 and 64 cents a litre, diesel between 53 and 57 cents, and illuminating paraffin 60 cents. "Without the impact of the exchange rate's recent poor showing, the predicted drops would have been in a range between 75 and 83 cents a litre," the Association commented.

"While a slight levelling off has become apparent in the downward trend of international petroleum prices," the AA said. "We are confident that fuel prices will drop at the end of August, but if oil prices flatten out, motorists will be at the whim of the Rand in coming months, the Association concluded.

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