First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We write for you

It’s a public service and we refuse to erect a paywall and force you to pay for truth. Instead, we ask (nicely and often) that those of you who can afford to, become a Maverick Insider and help with whatever you can. In order for truth not to become a thing of the past, we need to keep going.

Currently, 18,000 (or less than 0.3%) of our brave and generous readers are members; which says a lot about their characters and commitment to our country. These people are paying for a free service in order to keep it free for everyone.

They are the true South AfriCANs.(Sorry, we couldn’t help ourselves.)

Support Daily Maverick→
Payment options

Motorists in for massive drop in petrol price - AA

Newsdeck

Newsdeck

Motorists in for massive drop in petrol price – AA

By News24
15 Jul 2016 0

Cape Town – Motorists can expect a massive drop in the petrol price next month, as South Africans reap the benefit of the weak oil price and the strengthening rand in the face of Brexit, the Automobile Association (AA) announced on Friday.

“The mid-month data sees petrol poised for a drop of up to 83 cents a litre, with diesel set for a reduction of 45 cents and illuminating paraffin around 42 cents a litre down,” the AA said in a statement.

It was commenting on unaudited mid-month data released by the Central Energy Fund.

“After initially weakening in the wake of the UK referendum result in late-June, the rand has since strengthened steadily,” the AA said.

“At the same time, international petroleum prices have retreated on concerns over economic uncertainty following the vote. As a result, fuel prices are showing favourable gains.”

Despite this positive picture, predicting the likely position at the end of July remains complex, the AA said.

“The underlying trend has been towards higher fuel prices over the past months as the rand weakened and international oil prices climbed.

“It is not yet clear what effect recent events will have on this trend, and it would be premature to assume it has been disrupted,” it said.

“Accordingly, we advise motorists to maintain a conservative approach, and not take on additional expenses in the expectation of sustained fuel price drops,” it said.

Motorists have endured a series of petrol price hikes since the year started.

This month petrol increased by 11 cents per litre, while diesel went up by up to 42c/l.

Last month the pump price of petrol increased by 52 c/l for all grades, while diesel went by a whopping 76c/l.

Fin24

Gallery

Please peer review 3 community comments before your comment can be posted