The Automobile Association is forecasting a possible drop in the fuel price on the 1st of August but is warning that instability in the rand/ US dollar exchange rate could offset any relief at the pumps.
After a period of stability towards the last week of June, the exchange rate has climbed from R12.20 to the dollar to almost R12.40 to the dollar. The drop in international petroleum prices has kept ahead of the exchange rate though, meaning that petrol is currently in line for a reduction of 28 cents a litre, with diesel and illuminating paraffin set for a decline of around 50 to 55 cents a litre.
However, the AA has cautioned that a flattening of international or continued depreciation of the Rand against the dollar could reverse this trend.
