Cape Town – The Automobile Association (AA) says motorists can expect some respite from recent increases in fuel prices, forecasting a significant price cut next month.
Despite the weakness of the rand, data from the Central Energy Fund indicates a positive fuel price outlook.
As winter approaches, it is more likely that motorists will spend less on fuel in June.
The AA predicts a decrease of around R1 per litre for both grades of petrol and at least R1.30 per litre for diesel.
“The weaker rand/US dollar exchange rate, though, is taking away from the forecast decreases, which would have been more significant had the rand been stronger,” the AA said on Wednesday.
“As it stands, both grades of petrol are heading for decreases of around R1/l, while the decreases for diesel are currently standing at around R1.30/l. Importantly, the data is showing that illuminating paraffin, which is such an important fuel at this time of the year, is headed for a decrease of around 80c.”
Lower international product prices and the regular use of illuminating paraffin during this time of year are contributing factors to the lower fuel prices, said the AA.
If the predicted price drop is realised, it will bring much-needed relief to financially strained consumers who have experienced fuel price increases in the past two months.
“Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices, but a decrease in fuel costs will make a difference to many,” the AA said.
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Compiled by Betha Madhomu
