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South African motorists can expect to pay lower fuel prices in September, as firmer oil prices were stronger than a losing Rand.
That is according to the Automobile Association, which was commenting on Thursday on unaudited month-end fuel price data released by the Central Energy Fund.
The Association said the retreat in oil prices means that 95 octane petrol is expected to drop by around four cents a litre, with diesel down by 19 cents and illuminating paraffin by 24 cents.
"The only fuel type set for an increase is 93 octane petrol, which will climb by about six cents a litre," the AA comments.
"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. The good news is that a steady performance from international oil prices has offset the Rand's weakness."
However, the AA warned against complacency, noting that international product prices had made some gains in the last week of August, which could put the fuel price on the back foot in the weeks to come.
"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," the Association said.
