By Rachel Mohamed
The Automobile Association has reported that based on unaudited mid-month data from the Central Energy Fund (CEF), petrol, diesel, and illuminating paraffin will be cheaper in September than at any other time this year.
Speaking on VOC’s News Beat show on Tuesday, Automobile Association spokesperson Eleanor Mavimbela stated that two factors come into play when talking about the over-recovery that will result in a decrease in fuel in the country.
“These factors are international product prices, the rand-dollar exchange rate coupled with the decrease in the oil prices internationally, and the strengthening of the rand.”
The move “creates a perfect situation” which leads to the prediction of a fuel reduction in the coming months, she said.
Mavimbela alluded to the fact that “if the trajectory remains the same towards the end of the year, it will be the fourth consecutive decrease we have seen this year.”
“And when the inflation goes down the price of goods and services also goes down then it’s good news for consumers paying less for goods and services meaning that they will end up with more money in their pockets,” she added.
Mavimbela has highlighted that with the drop in fuel the association has long been supporting the fuel price review even though the fuel prices appear as if they are stabilizing it does not mean the country would move away from urgently having a fuel price review.
“The automobile association has been advocating for a fuel price review in the past couple of years and consumers can budget better because the fuel prices are more stable and sustainable.”
“And if the Minister of Finance Enoch Godongwana decides in February during his Medium-Term Budget to increase fuel, then would end up with record high prices.”
Mavimbela concluded by saying “For the past three years, the association has been making noise in the review and President Cyril Ramaphosa has made a declaration during the opening of the parliament that the government is aware of our grievances and heed to our call.”
Photo: VOC News
