Conditions ripe for fuel price relief
18 August 2014
The AA’s view on the petrol price in September
Substantial drops in fuel prices are on the cards. This is according to the Automobile Association, which was commenting on the unaudited fuel price data released by the Central Energy Fund on August 15. “International petroleum prices have continued to moderate since late July,” said the AA. “In addition, the Rand / US dollar exchange rate has remained within a narrow band and is showing signs of a slight strengthening in favour of the Rand. These two positive factors have resulted in a large over-recovery on petrol in particular,” the Association added.
The over-recovery for petrol ranges between 59 and 65 cents per litre, while diesel and paraffin have seen more modest over-recoveries, at 15 cents and 12 cents per litre respectively. The AA said that if the exchange rate remained stable or firmed while the two month-long decline in international petroleum prices continued; South Africans could be in line for one of the largest drops in the fuel price in recent times. “Conditions look ripe for motorists to receive some much-needed relief at the pumps come the end of August,” the AA concluded.