MOTORISTS may see petrol prices drop soon as the Rand has put on a amazing comeback against the US dollar in recent weeks, with the daily exchange rate strengthening from R17.30 on 21 August to R16.70 on 31 August.
This is according to the AA, commenting on unaudited mid-month fuel price data released by the Central Energy Fund. “This all adds up to a promising picture for fuel users, with the data showing petrol lower by between 26 and 36 cents a litre, but diesel down by a whopping 88 cents, with illuminating paraffin also showing a healthy 83-cent drop,” it said.
The AA warned oil prices could continue to see-saw as world oil demand and supply gradually re-balance after the chaos of the first lockdown period of March to June. It also said it was usual at this time of year for the coming Northern Hemisphere winter to start driving demand for heating fuels, meaning pressure on refining capacity for fuel oils, including diesel.