Skip to main content

SA petrol price could drop 64 cents in September

| Economic factors

The Automobile Association of South Africa (AA) says the petrol price could drop by between 55 cents and 64 cents a litre in September, despite a weak local currency.

Sharp climbs in the Rand/US dollar exchange rate have been offset by ongoing declines in international petroleum prices, the AA said in a statement on Monday (17 August).

The AA 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.”

At mid-noon on Monday, the rand was trading at 14-year lows at R12.91 to the dollar, having slipped to an all-time low past R20 to the pound.

Petrol is showing a drop of between 55 and 64 cents a litre, diesel between 53 and 57 cents, and illuminating paraffin 60 cents, the association said.

“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,” it said.

“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,” it said.

In August the price of 93 and 95 petrol declined 51 cents, while diesel dropped by 76 cents per litre.

So far in 2015, the price of petrol has increased from R10.78/litre in January to R13.26 in August




Pin It

Related Articles

South Africans are resilient people who are always ready to seek solutions for problems, even if the trials they face are caused by events that are beyond their control. An empowering example of this approach to life is the use of grocery stokvels...
In response to rising food costs, The SPAR Group offers practical tips for beating food inflation through savvy shopping and creative cooking.
By: Myles Illidge – MyBroadband South Africa’s Road Accident Fund (RAF) tax and General Fuel Levy (GFL) add between R272 and R483 to the price of a tank of fuel, depending on the size of your car’s tank.
By: Shaun Jacobs – Daily Investor Major changes are coming to VAT in South Africa, with the government looking to expand the range of food items exempt from the tax. 
By: Hanno Labuschagne - MyBroadband An anticipated strengthening of the rand and slipping global oil prices could result in lower petrol prices at the pumps next month.