Petrol prices potentially set to decrease in September
A statement released by Automobile Association (AA) states that motorist can expect a reduction of petrol prices in September.
Petrol is said to be currently set for a decrease of around 9c/litre, diesel by around 7c/litre and illuminating paraffin by about 12c/litre.
“Fuel prices are showing slight reductions at mid-month, in the midst of a tug-of-war between international oil prices and the Rand/US dollar exchange” AA said while commenting on the unaudited mid-month price data release by the Central Energy Fund.
This slight reduction in petrol prices is said to have been caused by a slip in oil prices. According to the association oil has been traded in a fairly narrow band over the past six weeks, showing that a more reliable plateau has been reached.
As much as there is a slip in oil prices the AA states that they are still aware that the Rand has lost ground against the US dollar since the start of the month, with average rate having climbed from just over R16.80 to the dollar to nearer R17.40.
“This spells trouble for motorists if it continues, but for now, the oil price is the stronger of the two forces. If this picture retains stability in the second half of the month, we expect only modest changes to the fuel price” the association concluded in their statement.