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AA says fuel price ‘breather’ on the cards in August


The Automobile Association said a better exchange rate performance and "retreats" in international oil prices will mean virtually unchanged fuel prices in August.

The AA was commenting on Friday on unaudited month-end fuel price data released by the Department of Energy.

The AA said in a statement that there was a slow-down in the recent weakening trend of the Rand against the US dollar in July.

“Over the same period, international oil prices showed a slight average decrease which almost exactly cancelled the Rand's losses,” the AA said.

"As a result, petrol is expected to increase by around two cents a litre, and illuminating paraffin by four cents a litre," the Association said.

"On the plus side, diesel will be cheaper by approximately four cents a litre. After several successive fuel price increases, motorists and other fuel users are due a breather, and the general stability of the fuel price during July will come as a relief to many."

The AA notes that international oil prices showed a slight upward trend towards the end of July and says that motorists' budgets would probably remain under pressure for the rest of the year.

"2018 has been a year of volatility in the fuel price, and the see-sawing Rand and oil price suggest that caution should be the watchword," the Association concluded.