The Automobile Association (AA) has revised its final fuel price prediction for September by announcing a slightly smaller decrease in the price of 95 unleaded, but a more substantial dive in the price of diesel and illuminating paraffin.
Commenting on the final unaudited data report by the Central Energy Fund, the AA said it expects the price of petrol to drop by four cents a litre as opposed to nine, diesel by 19 cents instead of seven and illuminating paraffin by 24 cents instead of 12. The fortunes of 93 unleaded users will however go the other way with an expected uptake of six cents.
“The bad news for the month was the Rand, which pulled back from testing the R16.80 mark against the US dollar last month and headed towards R17.40 at mid-month, with a slight firming trend since. On average, exchange rate losses added around 17 cents a litre to next month’s petrol price. The good news is that a steady performance from international oil prices has offset the Rand’s weakness,” the association said.
“As the country comes to terms with the economic damage caused by the COVID-19 lockdown, there is also concern about government’s ongoing policy uncertainty and levels of corruption as highlighted by the President”.
Despite the downturn, the association stated that consumers should remain wary of a possible rebound in international oil prices which, together with a stronger Rand, could erode any potential gains and possibly lead to an overall rise at the pumps come 2 September.