Petrol price could drop says AA
DURBAN – Motorists can expect a petrol price drop at the pumps this month if Rand strength prevails.
Current data predicts a drop of 24 cents a litre for petrol, 20 cents for diesel, and 21 cents for illuminating paraffin. This is subject to the Rand strength against the US dollar. “Ongoing volatility in international oil prices has been matched by swings in the Rand / US dollar exchange rate, making fuel price predictions as tricky as ever,” said the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
The month started with a favorable Rand/ US Dollar exchange and “soft” petroleum prices. “We wouldn’t rely on these figures though, since a lot could change by month end,” the AA commented.
OPEC production cuts contribute to the fuel price predictions. “Internationally, OPEC seems set to stay the course with its production cuts, and on the local front, ratings agency Moody’s is likely to make an announcement on its view of South African sovereign debt, which is anticipated to be negative,” said the AA.
As Rand strength and other factors come into play, the petrol price is subject to fluctuations before the end of the month.