The fuel price decrease for September 2016 is likely to be less than expected due to recent political and economic developments in South Africa.

A few weeks ago we reported that the fuel price would likely plummet in September by as much as R1 per litre. Now, the decrease is looking more like 25c/litre for petrol and 54c/litre for diesel.

"International petroleum prices have put in a surprising rally since the middle of the month," the AA said.

It noted that a stronger Rand would have cushioned this increase in international petroleum prices, but that this is now not the case given the latest developments related to the weakening Rand.

"The stronger oil price might have been kept in check more effectively had the Rand not sagged so sharply against the dollar in the wake of developments around the Minister of Finance, Pravin Gordhan, who is the subject of further investigation by the Hawks," the AA said.

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