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Energy Dept expected to announce fuel price decrease

The AA predicted an 86 cent drop in the price of petrol and 68 cents for diesel. The AA also predicted a 58 cent drop in the price of illuminating paraffin.

Picture: EWN

JOHANNESBURG – The Department of Energy will announce on Friday whether predictions of a large petrol price decrease next month will kick in next Wednesday.

The Automobile Association (AA) predicted an 86 cent drop in the price of petrol and 68 cents for diesel. The AA also predicted a 58 cent drop in the price of illuminating paraffin.

AA spokesperson Layton Beard cited lower international oil prices as the reason for the predicted fuel price decrease.

“The real driver behind this is a lot of international oil prices, which we have seen throughout June. Unfortunately, the rand has weakened over the same period and had it not done so, these decreases could have been a lot more significant than what we are forecasting,” he said.

“But, in the context of the increases that we have seen throughout the year, I think this will be welcomed news nonetheless,” Beard added.

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