Cheaper fuel prices to bring relief
South African motorists can expect some relief when the fuel prices are announced for the month of June.
According to the Automobile Association (AA), petrol could drop by up to 26 cents a litre, with a 20 cent drop for both diesel and illuminating paraffin.
The AA says the decrease in fuel prices is a result of the Rand strengthening against the US Dollar during most of May, paired with support from retreating international petroleum prices.
"Both of these factors have contributed to the reduction in the fuel price," the AA says in a statement.
The AA adds that 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.
"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," the AA says,
It further adds that political uncertainty is likely to continue and this could impact South Africa's medium-term outlook for the fuel price, but that lower international petroleum prices will maintain local fuel price stability.
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