Weaker rand could stifle August fuel price drop
The Department of Energy says the rand's performance against the US dollar could prove to be a stumbling block to lower prices at the pump in August.
Last week, the Automobile Association said in its mid-month report there could be a decrease in the price of 95 octane petrol by up to 90c per litre, while 93 octane petrol could be R1.07 a litre cheaper, diesel by 91c a litre and illuminating paraffin’s decrease of about 94c per litre.
However, the department’s Robert Maake says weaker rand has since then eroded that forecast.
"On the petroleum price side, it was looking good the prices were going down, however, the exchange rate is going the opposite direction. So, we are hoping for positive news next week Friday."
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Motorists can expect an announcement on the fuel levies on Friday.
August will be the first month in which South Africans will be paying the full fuel price, with no further temporary relief from government.
In July, the increases saw both grades of petrol going up by R2.37 and R2.57 per litre, both grades of diesel increased by R2.30 and R2.31 per litre and Illuminating paraffin costing R1.66 more.
