Fuel price set to drop next month
This is great news after numerous substantial price hikes over the past few months
IT is thanks to declining oil prices that motorists can look forward to a substantial drop in the price of fuel next month.
This is according to the Automobile Association (AA) when commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The AA is predicting a decrease of 91c/litre to the petrol price, 70c/litre to diesel and 62c/litre to illuminating paraffin.
‘The story of the month is definitely oil,’ said the Association.
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‘Crude laboured above $70 a barrel for much of April and May as the tug-of-war continued between the OPEC countries and the USA.’
According to the AA, there had been a remarkable drop in the price of oil since the end of May, with the commodity currently trading around $61 a barrel.
‘South Africans are not getting full value though, thanks to Rand jitters in the wake of the ANC top leadership trading jibes over the future of the Reserve Bank.
‘After a period of sustained price stability, the Rand weakened substantially against the US Dollar, taking some of the shine off oil’s retreat.
‘If stability returns to the Rand and oil settles at its lower level, there might yet be more good news in the pipeline.’
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