A significant drop in fuel prices in South Africa is expected next month, the Automobile Association of South Africa has announced.
“Encouraging mid-month fuel price data has been buoyed by receding international petroleum prices, meaning good news for motorists in August,” the AA said in a statement.
The AA said that the oil price has continued to decline since the mid-month data was released.
Despite the weak Rand, the AA says that the currency has remained relatively steady.
“The result is that most of the benefit of lower international product prices will be passed on to the motorist.”
According to the AA, the petrol price should drop between 47 to 49 cents a litre.
Meanwhile diesel is expected to drop 70 cents.
Illuminating paraffin is expected to drop around 68 cents a litre.
“The recent downward trend in international petroleum prices would require a substantial reversal to heavily impact South African fuel prices,” the AA commented. “The short- to medium-term outlook for the fuel price is therefore likely to depend largely on the exchange rate,” the Association concluded.
Later today, the Energy Department will make an announcement on the possible fuel price decrease.