Likely petrol price relief on the cards

The Automobile Association of South Africa (AA) said today a petrol price decrease is likely to be on the cards at the beginning of September, although the prices of diesel and illuminating paraffin seem to have remained fairly stable.

The petrol price has shot up in the past few months to breach the R13/l level largely as a result of a weaker rand. This has caused fears that it will trigger broader inflationary pressures.

AA said data from the first two weeks of August 2013 shows that the Rand/US Dollar exchange rate has eased enough to offset recent increased costs in the basic fuel price.

The AA added that the basic fuel price for petrol is also trending slightly downwards, and this has offset some small peaks in both exchange rate and fuel price during August. Current projections are for a price decrease of between 20 and 27 cents per litre for petrol. However, the overall prices of diesel and illuminating paraffin have been virtually flat. The data is showing that the diesel price should go down by about two cents per litre while illuminating paraffin currently indicates an increase of three cents per litre.

The AA cautioned that the trend predictions were based on unaudited data and that a firm statement on adjustments to the fuel price for September would only be announced at the end of the month.

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