PLEASE TAKE NOTE:
The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated.
Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy. The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.
As a public service to consumers, the AA publishes two fuel price outlooks monthly – one mid-month, and one at the end of the month before the official announcement by the DMRE is made, usually two or three days before the first Wednesday of the new month.
The AA publishes these forecasts to alert the public of looming changes to fuel prices, and the reasons for the changes. The AA relies on publicly available fuel price data from the Central Energy Fund (CEF) to compile its forecasts – a fact which is mentioned in every fuel price outlook issued by the AA. Along with the information relating to fuel price adjustments and providing context for them, the Association often provides useful tips to road users on how to conserve fuel, and tips for saving on fuel expenses.
South African fuel users will enjoy a breather in September, with prices of all grades of fuel set to drop. This is according to the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The Association’s outlook for September is that petrol will drop by around 11 cents a litre, diesel by up to 21 cents a litre, and illuminating paraffin by around 12 cents.
“International petroleum prices continued their gradual retreat during August, having pulled back by around ten percent since the start of the month. We attribute this mainly to the Organization of Petroleum Exporting Countries (OPEC) cartel, which increased oil production gradually during the first half until previous production restrictions were removed,” the Association says.
The AA notes, however, that the Rand weakened a fair amount against the US dollar in August, meaning that South African fuel users will not enjoy the whole benefit of the lower oil price.
The Association says it is concerned about the trajectory of the Rand, whose average exchange rate against the US dollar weakened considerably since July 6. The Rand slid from around R14.32 on that day to over R14.70, with daily highs peaking in excess of R15.30.