There is good news on the horizon for local motorists as the Automobile Association expects the fuel price to drop in July.
The AA today said that it expects the price of fuel to drop by the following amounts next month.
- Petrol – 86 cents
- Diesel – 68 cents
- Illuminating paraffin – 58 cents
These price drops come as a result of international oil prices lowering throughout June. This month the price of crude oil reportedly dipped to below $60 a barrel.
The AA says that the price may have dropped even further had the Rand’s value not slipped during the month.
It’s also worth noting that this price dip might be short-lived.
Tensions between the US and Iran could have “severe ramifications” to the price of oil according to the AA.
“South Africa’s economy would be very badly affected if, as earlier in the decade, we were to return to sustained prices in excess of $100 per barrel. In such an environment, any event which affected the Rand markedly would have a dire effect on fuel users,” the AA said.
For now at least it appears as if South Africans can expect a brief break from a petrol price that just appears to constantly be going up.[Image – CC 0 Pixabay]