The price of fuel could soon be significantly cheaper, owing to the strengthening of the rand, the Automobile Association said on Monday.
“Petrol is slated for a reduction of up to 69c/l, diesel 94c, and illuminating paraffin is showing a potential drop of 92c,” said the AA about unaudited mid-month fuel price data released by the Central Energy Fund. This follows a 99c/l drop on 3 August owing to the stronger rand and weaker oil price.
“The rand firmed substantially against the US dollar in the first fortnight of August,” the AA said.
However, it added that international petroleum prices showed a sharp jump over the same period.
“Fortunately for South Africans, the rand is ahead in the contest, and the current data indicates considerable price reductions at month-end.”
The association said the final fuel price for September will depend on whether the rand can continue to counter upward trends in international petroleum prices.
“Any flattening out of the rand’s gains would be negative for the fuel price, but there would have to be a substantial reversal for the current picture to be spoiled before the end of August.”
Meanwhile, a pay strike by petroleum workers continues.
The Chemical, Energy, Paper, Printing, Wood and Allied Workers Union is demanding a minimum monthly salary of R8 000 for workers.
Negotiations between the union and the National Petroleum Employers’ Association are expected to resume on Monday.
