The Automobile Association (AA) has said that South Africans can expect a drop in prices for both petrol and diesel in September.
The Association made the statement while commenting on the unaudited month-end fuel price data released by the Central Energy Fund.
The AA said that petrol is expected to “drop by around 11 cents a litre”, whereas diesel is expected to drop by “up to 21 cents a litre”.
Illuminated paraffin is then expected to drop by 12 cents a litre.
It is worth noting that these are not the official fuel price adjustments. These are put in place by the Department of Energy and gazetted before the first price adjustments are set to take place on the first Wednesday of the new month.
Fuel pricing in South Africa
The main factors affecting South African fuel prices are the rand/US dollar exchange rate and international petroleum prices.
“International petroleum prices continued their gradual retreat during August, having pulled back by around 10 percent since the start of the month,” said the Association.
It added that this is due to the slow increase in oil production during the first half of the year by the Organization of Petroleum Exporting Countries.
However, due to the rand weakening significantly against the US dollar in August, South African fuel users “will not enjoy the whole benefit of the lower oil price”.