Motorists can expect a massive drop in the petrol price next month, as South Africans reap the benefit of the weak oil price and the strengthening rand in the face of Brexit, the Automobile Association announced on Friday.
“The mid-month data sees petrol poised for a drop of up to 83c/l, with diesel set for a reduction of 45c and illuminating paraffin around 42c down,” the AA said in a statement.
It was commenting on unaudited mid-month data released by the Central Energy Fund.
“After initially weakening in the wake of the UK referendum result in late-June, the rand has since strengthened steadily,” the AA said.
“At the same time, international petroleum prices have retreated on concerns over economic uncertainty following the vote. As a result, fuel prices are showing favourable gains.”
Despite this positive picture, predicting the likely position at the end of July remains complex, the AA said.
“The underlying trend has been towards higher fuel prices over the past months as the rand weakened and international oil prices climbed.
“It is not yet clear what effect recent events will have on this trend, and it would be premature to assume it has been disrupted,” it said.
“Accordingly, we advise motorists to maintain a conservative approach, and not take on additional expenses in the expectation of sustained fuel price drops,” it said.
Motorists have endured a series of petrol price hikes since the year started.
This month petrol increased by 11c/l, while diesel went up by up to 42c/l.
Last month, the pump price of petrol rose by 52c/l for all grades, while diesel increased by a whopping 76c/l.