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Cape Town – Following this month’s 30c petrol price increase, motorists can expect fuel price relief in June, the Automobile Association (AA) said on Monday.
Following the release of unaudited month-end fuel price data by the Central Energy Fund, the AA expects the that petrol price will drop by up to 26 cents a litre, with a 20 cent drop for both diesel and illuminating paraffin in June.
INFOGRAPHIC: Breaking down the petrol price
The Department of Energy will make the official announcement regarding the fuel price at the end of the month.
The rand’s advanced against the US dollar during most of May, with further support from retreating international petroleum prices, will help motorists at the pump next month, the AA believes.
"Both of these factors have contributed to the reduction in the fuel price," it said in a statement on Monday.
OPEC's decision to continue its production cut for another nine months showed that there was concern in oil producing nations about a continued world oversupply of oil, the AA said.
“This could mean a period of relative price stability. On the home front, the Association said the background political noise affecting the Rand continued to play a role,” it said.
"With political uncertainty set to continue, our medium-term outlook for the fuel price is that lower international petroleum prices will be key to maintaining local fuel price stability if the rand weakens again," the AA said.
