AA: Fuel price drop depends on the rand’s performance against the dollar
The AA has predicted a drop in fuel prices next month, but it says the marginal decrease depended on whether the rand can hold its own against the dollar.
JOHANNESBURG – The Automobile Association (AA) said motorists could expect some relief at the pumps next month.
The association said as the global oil market continued to recover from its crash in April, petrol prices were beginning to stabilise, and it predicted a drop next week.
The AA'S Layton Beard said: “We are looking reductions of between seven to 12 cents for diesel and petrol and the main driver behind this is lower international oil prices, despite the weakening rand against the US dollar.”
Beard said the marginal decrease depended on whether the rand can hold its own against the dollar.
“If that picture changes then consumers could be in for less of a decrease, or perhaps even an increase. It’s all up to the numbers in the last couple of weeks. So, if the oil prices increase and the ran doesn’t hold its own then that could be bad news for consumers.”