There's some good news on the horizon as the Automobile Association of SA is forecasting a fuel price reduction for September 2020.

The Automobile Association of SA (AA) reckons there's a petrol, diesel and illuminating paraffin reduction on the cards for September 2020. Basing it's claim on the mid-month data, the AA says there's a 'tug-of-war between international oil prices and the Rand/US dollar exchange rate', which helps SA consumers.

As it stands, it looks like petrol will decrease by around 9 cents a litre, diesel down by approximately 7 cents, while paraffin's cost will come down by 12 cents.

"Oil prices have slipped a little, with the landed price of fuels in South Africa showing a slight reduction in the first half of August. Over the past six weeks, oil has traded in a fairly narrow band, indicating that a more reliable plateau has been reached, absent any unexpected shocks," says the AA.

However, the AA notes that the Rand had lost ground against the US dollar since the start of the month, with the average rate having climbed from just over R16.80 to the dollar to nearer R17.40.

"This spells trouble for South African fuel users if it continues, but for now, the oil price is the stronger of the two forces. If this picture retains stability in the second half of the month, we expect only modest changes to the fuel price," the AA concludes.

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