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REPORT: Fuel price reprieve on the cards for June


The Automobile Association (AA) has said it expects a small decrease in the price of all grades of fuel for June.

Commentating on an unaudited month-end fuel price statement by the Central Energy Fund, the Association said it anticipates the price of petrol to drop by 26 cents a litre, diesel by 20 cents and illuminated paraffin also by 20 cents. An official announcement is only slated for the end of the month.

It also remarked that the Rand's recent gains against the US Dollar, helped by lower international oil prices, played a significant part in the latest fuel price drop.

"OPEC's decision to continue its production cut for another nine months showed that there was concern in oil producing nations about a continued world oversupply of oil," the association said in a statement.

"On the home front, the background political noise affecting the Rand continued to play a role. With political uncertainty set to continue, our medium-term outlook for the fuel price is that lower international petroleum prices will be key to maintaining local fuel price stability if the rand weakens again".

A short while ago, the national currency was trading at R12.96 against the Dollar with Brent Crude Oil at $52.09 a barrel.

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