Spring is in the air and travelling is slowly opening up. More good news is that a fuel drop is is on the horizon as the AA predicts a price drop.

95 Octane petrol is expected to drop by plus minus 4 cents due to a decrease in the oil prices, with diesel expecting a drop of about 19 cents and illuminating paraffin about 24 cents.

It seems the only fuel type that can be expecting an increase is 93 octane petrol, and the expected rise is about 6 cents.

Unfortunately with a silver lining there has to be a dark cloud, and it seems the dark cloud is always the Rand versus the USD. The rand being the weaker currency was climbing the ladder to the R16.80 mark against the US dollar in August and was on it’s way towards the R17.40 mark mid August, with a slight firming trend since unfortunately pulled back and of course this always has the ripple affect on our fuel price.

The AA also noted that the losses in the exchange rate added about 17 cents a litre to Septembers petrol price.

To counter this is that the international oil prices with it’s steady performance has offset the Rand’s weakness.

Unfortunately due to the current economic state a drop in investor confidence was unavoidable and this has attributed greatly to the the affect of the Rand and in turn pushed fuel prices up. In due time we expect this to return back to a reasonable level. However, this is all dependant on what happens during the following

The AA also says the as we have to come to terms with the severe damage COVID-19 lock down caused our economy, we also face another concern and unfortunately lies in the hear of our country – the government’s levels of corruption as well as this ongoing policy uncertainty.

Fuel Zone