Now for some good news…Fuel price set to drop!

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Cii Radio| Ayesha Ismail| 20 June 2017| 25 Ramadaan 1438

Rand resilience and a declining oil price have set the scene for a further fuel price drop , reports the Automobile Association (AA), commenting on unaudited mid-month data released by the Central Energy Fund (CEF).

Current conditions suggests that road users could be looking at a petrol price decline of between 60 and 64 cents a litre at month end, with diesel showing a 60 cents reduction and illuminating paraffin 57 cents, reports the AA.

The AA says: “The Rand remained mostly stable against the US dollar in the first half of June, with strength in the currency contributing three cents a litre to the drop.

“The big move was from oil, which shrugged off OPEC’s production quotas to drop by around 8% since the start of the month.”

The Association says the fuel price will come under pressure if the three major ratings agencies downgrade Rand-denominated debt to junk status in future reviews of South Africa’s credit rating.

The AA said: “That could trigger substantial capital outflow, almost certainly leading to Rand weakness which will be heavily negative for the fuel price.

“Barring unexpected political or economic shocks in the lead-up to the next ratings reviews, we expect fuel price movements to mainly depend on international petroleum prices.”

Source – Wheels 24