Petrol price expected to drop by 64 cents next month

Experts expect the price of petrol to drop by as much as 64 cents to the litre next month, following a sturdy performance by the rand and weakening global oil prices.

The Automobile Association of South Africa, commenting on the unaudited data released by the Central Energy Fund, also said the price of diesel was likely to be reduced by 60 cents, while illuminating paraffin would also experience a price drop.

The AA said the rand’s performance during this period has been particularly significant in this regard.

“The Rand remained mostly stable against the US dollar in the first half of June, with strength in the currency contributing three cents a litre to the drop,” read a statement released by the AA on Tuesday.

However, the global oil prices played a major hand in their determination.

“The big move was from oil, which shrugged off OPEC’s production quotas to drop by around eight percent since the start of the month,” continued the statement.

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