Motorists across South Africa have enjoy a #FeelGoodFriday moment: Fuel prices will plunge in August.
This is the news from the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
The petrol price will fall by around a Rand a litre‚ diesel by approximately 70 cents‚ and illuminating paraffin by about 66 cents‚ the association predicts.
Explaining the reasons‚ the AA said: “The Rand has continued its recent march against the US dollar‚ with an almost uninterrupted two-month streak of gains‚” the AA said. “The local currency was pegged at R15.70 to the dollar at the end of May‚ but is now sitting around the R14.20 mark.”
Impressive though the Rand’s performance has been of late‚ it has contributed only about 25 cents of the expected fuel price drop in August. The balance has been due to the continued retreat of international petroleum prices in the wake of the United Kingdom’s vote to exit the European Union.
“The landed price of fuel has dropped by almost 20% from its June 22 level‚” the AA said.
“When taken in the context of the prevailing economic conditions‚ this windfall will come as a welcome breather to both private motorists and the transport industry‚” the Association concluded.
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
While motorists have rushed to fill up and are tweeting that some petrol stations have run out of petrol‚ the South African Petroleum Industries Association (SAPIA) has indicated fuel is in supply‚ and that it has contingency plans in place for the strike. Via Twitter it said: “Motorists are advised to stick to their normal refueling patterns to assist the petroleum industry in ensuring security of supply.”
The Edge Search
#FeelGoodFriday Petrol price is going to drop by R1